The Role of Fintech in Enhancing Financial Inclusion in Small and Medium-Sized Enterprises (SMEs) Growth in Aarhus, Denmark
DOI:
https://doi.org/10.53819/81018102t3179Abstract
This study examined the role of financial technology (FinTech) in enhancing financial inclusion and supporting the growth of small and medium-sized enterprises (SMEs) in Aarhus, Denmark. Financial inclusion remains important for SME development because many small businesses require affordable, accessible and flexible financial services to manage operations, obtain credit, process payments and expand into wider markets. The findings revealed that FinTech enhances SME growth by improving access to digital credit, peer-to-peer lending, mobile payments, automated credit scoring, online accounting, digital invoicing and cash-flow management tools. These services make it easier for start-ups, micro-enterprises, women-led businesses, youth-led enterprises, immigrant entrepreneurs and firms with limited collateral to access formal financial services and participate more effectively in the digital economy. The study further established that FinTech promotes business efficiency by reducing transaction costs, improving financial record keeping, supporting faster payments, strengthening decision-making and enabling SMEs to engage in e-commerce and cross-border trade. However, the study also found that the full benefits of FinTech depend on important supporting factors such as digital financial literacy, cybersecurity, trust, regulatory clarity, affordable digital infrastructure, consumer protection and advisory support. Some SMEs may still face challenges related to low digital skills, data privacy concerns, platform costs, lack of confidence in digital finance and risks of over-indebtedness. The study concluded that FinTech has strong potential to promote inclusive and sustainable SME growth in Aarhus when supported by a secure, transparent and well-regulated digital finance ecosystem. The study recommended stronger collaboration among policymakers, regulators, financial institutions, FinTech providers, universities, innovation hubs and SME associations to improve digital literacy, strengthen consumer protection, expand affordable digital finance solutions and ensure that FinTech becomes a practical tool for competitiveness, innovation, resilience and long-term SME growth.
Keywords: FinTech, Financial Inclusion, SMEs, Denmark
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