Abstract
This chapter goes deeper in the problem caused by the regulatory constraints in the banks due to the increase of regulatory capital requirements. From a former Citibank managing director, global head of regulatory perspective, the author stresses the increased role of the emergence of fintech and the strong potential of synergies between SMEs, banks and fintech firms in the “open banking” ecosystem. SME financing in Europe is on the path of transformation. From traditional bank-led methods of financing, SMEs as well as start-ups are exposed to more choice of sources of funding across a broader array of providers. Access to financing still takes too long and few SMEs make use of the option to access national capital markets. There are some suggestions that the gradual digitisation of the economy also accelerates the digital transformation of the financial environment for SMEs. Mini-bonds, as an alternative financing path that an SME can follow to finance its growth, is taken into consideration. Considerable emphasis is placed upon the growing significance of supply chain finance (SCF) products as an efficient and cheap alternative and the capacity of blockchain technology in improving the quality and efficiency of processing the financing requirements of the SMEs.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
KPMG and University of Cambridge. (2016). Global Insights from regional Alternative Finance studies, October 2016, p. 3. Available at URL https://home.kpmg.com/content/dam/kpmg/uk/pdf/2016/10/global-alternative-finance-report-web.pdf
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Wandhöfer, R. (2019). Financing Models for SMEs in the Age of Disintermediation. In: Kaili, E., Psarrakis, D., van Hoinaru, R. (eds) New Models of Financing and Financial Reporting for European SMEs. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-02831-2_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-02831-2_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-02830-5
Online ISBN: 978-3-030-02831-2
eBook Packages: Economics and FinanceEconomics and Finance (R0)