Scholarlink

<p>The digital revolution has fundamentally transformed banking through financial technology (FinTech). We examine whether bank FinTech can enhance innovation capabilities among Chinese small- and micro-sized enterprises (SMEs). Using web scraping technology, we construct a novel city-level bank FinTech index. Our findings demonstrate that bank FinTech significantly boosts SME innovation compared to traditional branch expansion. Mechanism analysis reveals that FinTech’s innovation incentive effects primarily operate through two channels: alleviating financing constraints and reducing rent-seeking costs. However, we identify a “universal but not beneficial” phenomenon, as FinTech fails to significantly lower credit interest rates. Notably, the innovation incentive effects are particularly pronounced in regions with strong inclusive finance policy implementation. Heterogeneity analysis indicates that bank FinTech most effectively promotes innovation both among SMEs lacking physical capital and among those located in eastern China, while showing limited impact on those with low human capital. These findings provide valuable policy implications for stimulating SME innovation and development in the digital era.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Beyond branch expansion: bank financial technology as a catalyst for SME innovation in China

  • 期刊论文

  • 发表日期：

    2026年5月18日

查看全文
  • Yuhong Huang,
  • Jiale Jia,
  • Ruiyi Ren,
  • Haijun Wang

摘要

The digital revolution has fundamentally transformed banking through financial technology (FinTech). We examine whether bank FinTech can enhance innovation capabilities among Chinese small- and micro-sized enterprises (SMEs). Using web scraping technology, we construct a novel city-level bank FinTech index. Our findings demonstrate that bank FinTech significantly boosts SME innovation compared to traditional branch expansion. Mechanism analysis reveals that FinTech’s innovation incentive effects primarily operate through two channels: alleviating financing constraints and reducing rent-seeking costs. However, we identify a “universal but not beneficial” phenomenon, as FinTech fails to significantly lower credit interest rates. Notably, the innovation incentive effects are particularly pronounced in regions with strong inclusive finance policy implementation. Heterogeneity analysis indicates that bank FinTech most effectively promotes innovation both among SMEs lacking physical capital and among those located in eastern China, while showing limited impact on those with low human capital. These findings provide valuable policy implications for stimulating SME innovation and development in the digital era.