Fintech, Small Business & the American Dream: How Technology Is Transforming Lending and Shaping a New Era of Small Business Opportunity

Small businesses are the backbone of the U.S. economy, but they often struggle to get the capital they need to operate and succeed. Fintech entrepreneurs have recognized the gaps in the small business lending market and revolutionized the customer experience, making it easier for small businesses to apply for loans and hear back within hours. Banks have scrambled to catch up, and technology companies like Amazon, PayPal, and Square have entered the market. Karen G. Mills' book "Fintech, Small Business & the American Dream" focuses on the needs of small businesses for capital and how technology will transform the small business lending market.

\n Format: Hardback
\n Length: 202 pages
\n Publication date: 29 March 2019
\n Publisher: Springer Nature Switzerland AG
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Small businesses are the backbone of the U.S. economy, creating the most jobs and offering a path to the American Dream. However, accessing capital has been a challenge for many, particularly during the Great Recession and in the aftermath. In the years following the financial crisis, the outlook for many small businesses remained bleak. But then, a new dawn of financial technology, known as "fintech," emerged.

Beginning in 2010, fintech entrepreneurs recognized the gaps in the small business lending market and revolutionized the customer experience for small business owners. Instead of filling out paperwork and waiting weeks for an answer, small businesses could apply online and receive feedback within hours, sometimes even minutes. Banks scrambled to catch up, and technology companies like Amazon, PayPal, and Square entered the market, opening up new possibilities for transformative products and services.

In her book, Fintech, Small Business, & the American Dream, former U.S. Small Business Administrator and Senior Fellow at Harvard Business School, Karen G. Mills, focuses on the needs of small businesses for capital and how technology will transform the small business lending market. This market has been plagued by frictions, such as determining which small businesses are creditworthy and borrowers not knowing how much money or what type of loan they need. New streams of data have the potential to alleviate these challenges by providing more transparency into a small business's finances, making it easier for them to manage cash flows and weather unexpected downturns.

Fintech has the potential to level the playing field for small businesses, providing them with access to capital and resources that were previously out of reach. By leveraging technology and data, fintech companies can offer more personalized and flexible loan products, tailored to the specific needs of small businesses. This can help small businesses grow and thrive, creating new jobs and contributing to the overall economic growth of the United States.

However, there are also concerns about the potential impact of fintech on traditional banks and financial institutions. Some argue that fintech companies may be able to offer lower interest rates and more flexible terms, which could put pressure on traditional banks to compete. This could lead to a reduction in the number of small business loans available, particularly for those businesses that may not be as creditworthy or require more specialized financing.

To address these concerns, it is important for policymakers and regulators to work closely with fintech companies to ensure that they are operating in a safe and responsible manner. This includes ensuring that fintech companies are adhering to strict consumer protection laws and regulations, and that they are providing fair and transparent lending practices to their customers.

In conclusion, small businesses are the backbone of the U.S. economy, and fintech has the potential to revolutionize the small business lending market. By providing more access to capital and resources, fintech companies can help small businesses grow and thrive, creating new jobs and contributing to the overall economic growth of the United States. However, it is important for policymakers and regulators to work closely with fintech companies to ensure that they are operating in a safe and responsible manner, and that they are providing fair and transparent lending practices to their customers.

\n Weight: 576g\n
Dimension: 163 x 244 x 16 (mm)\n
ISBN-13: 9783030036195\n
Edition number: 1st ed. 2018\n