P2P lending Fintechs and SMEs’ access to finance

Abstract Given the importance of Small and Medium Enterprises (SMEs) to the economy, we investigate whether peer-to-peer (P2P) lending financial technologies (Fintechs) enhance the SMEs’ access to finance. Using a sample of OECD countries from 2011–2018, our fixed effects model finds that P2P lending Fintechs increase the access to finance for SMEs. We also evidence that institutional quality positively moderates the association between P2P lending Fintechs and SMEs’ access to finance. Our results suggest that SME managers may meet the liquidity needs of their firms through the use of P2P lending Fintechs.