SMEs that must be de-risked are experiencing issues with access to finance, however blockchain may be the answer to their problem. Dubai-Based Global Anti-Money Laundering, Risk, Governance and Compliance Professional, Maureen M., explores the benefits of blockchain and their ability to transform how SMEs are perceived by financial institutions (FI).
Money laundering plays a significant part in the lack of trust from FIs towards SMEs. According to the article, “Money launderers can explore these loopholes and set up SMEs in different countries and use them to launder funds.”
According to the article, “in an industry where 40% of small businesses report cash flow issues, it is understandable why only 15% of business owners are granted loans.” Blockchain can reduce the risks surrounding solvency, and contribute to building trust between SMEs and FIs.