The Impact of FinTech Development on SME Credit Access in China: Evidence from Provincial Data

Abstract

The rapid rise of Financial Technology (FinTech) has reshaped the landscape of inclusive finance in China. Against the backdrop of national policies such as the FinTech Development Plan (2022–2025), this study examines whether provincial-level FinTech development is linked to the distribution of credit between small and medium-sized enterprises (SMEs) and larger firms. Using panel data from 31 provinces in China from 2011 to 2020 and applying a univariate linear regression, the study examines the relationship between the Digital Inclusive Finance Index and the share of SME loans in total provincial loans. The results show a strong negative link. This means FinTech growth is tied to changes in how credit is shared, not to the total amount of SME credit. The change is different across regions. Eastern provinces have more balanced results, but central, western, and northeastern regions see bigger drops in SME loan shares. The policy meaning is clear. Different places need different plans. These plans include building more digital infrastructure in regions that fall behind, using both old and new credit models, and making the sharing of financial resources fairer for all.