Shanghai firms offer digital tech to help SMEs with financing

Digital firms are offering support for small- and medium-sized enterprises (SMEs) and individual businesses to get access to loans as they are backbone of China's economy and primary employers of millions of workers.

The market only meets less than half of SMEs' financing demand, but fintech and digital services can improve the situation, according to an iResearch report released in Shanghai.

SMEs' ability to survive and prosper again is the key to getting the post-lockdown economy up and running, playing a key role in economic rebound and stability, experts said.

FinVolution, an online finance platform headquartered in the Pudong New Area, is offering digital tools for SMEs, believing the market segment has "huge market space."

FinVolution actively shares digital technology capabilities with financial institutions and industrial partners. And finally helps them to offer financing services to SMEs with digitalized credit and risk control tools, said Wang Shiyi, vice president of the New York-listed firm.

In Shanghai, FinVolution has signed a cooperation agreement with Kingdeect on digital and fintech services for SMEs.

The two partners will solve the problems of SMEs like the lack of guarantee and the irregularity of enterprise data. They will offer SMEs a "big data credit report," and banks can finance small and micro enterprises based on the content of this credit report.

Kingdeect has served nearly 500,000 SMEs over the past three years, helping them to borrow a total of more than 90 billion yuan (US$13.2 billion).