Small and medium sized enterprises (SMEs) are often cited as the major driver of economies and a force in job creation, ut they still have difficulty securing proper financing to prosper.

The global financial crisis of 2007-2008, coupled with higher regulation and capital costs for loans to SMEs, has made it even more difficult for SMEs to secure financing. However, the financial crisis has also created a plethora of disruptors in the FinTech area (“FinTech”, a contraction of “finance”and “technology”, is defined as the use of technology and innovative business models in financial services) who, with heir innovative ways to originate, assess credit risk and fund SME loans, have provided alternative ways for SMEs to secure funding for their growth.

Over the last year, the Global Agenda Council on the Future of Financing & Capital, formed of industry leaders, academics, finance ministers and central bankers, has tackled the question of the lack of financing for SMEs, although ample cash is ready to be deployed.

This report synthesizes the authors’ efforts to take stock of what the finance industry has provided to date and how the FinTech industry has taken over some of the funding with its innovative business models and products. On behalf of the World Economic Forum and the Global Agenda Council on the Future of Financing & Capital, we wish to thank all who have contributed their time and expertise to this report, particularly Arnaud Ventura and Peter Tufano, who led this work stream, and Daniel Drummer, who led the research and editing of this work.

We hope the report proves to be insightful and a helpful reference in your quest to understand how disruptors in the FinTech industry are providing alternative ways of funding for SMEs.