INNOVATIVE FINANCING MECHANISMS FOR SMALL AND MEDIUM-SIZED ENTERPRISES IN THE CONTEXT OF THE GLOBAL DIGITAL TRANSFORMATION OF FINANCIAL SYSTEMS

Abstract

The article examines innovative financing mechanisms for the economic activities of small and medium-sized enterprises (SMEs) in the context of the transformation of the global financial system and the expansion of digital financial technologies. Despite their significant contribution to employment generation and economic growth, SMEs continue to face substantial constraints in accessing financial resources. According to international estimates, the global financing gap for micro, small, and medium-sized enterprises exceeds USD 5 trillion, highlighting the structural limitations of traditional banking systems in meeting the financial needs of this sector. The study analyses the evolution of SME financing from conventional bank lending to modern alternative instruments enabled by financial technologies. Particular attention is devoted to crowdfunding, peer-to-peer (P2P) lending, marketplace lending platforms, as well as supply chain finance and trade finance mechanisms. The paper demonstrates that digital platforms reduce information asymmetry, lower transaction costs, and expand access to capital for enterprises that are often excluded from traditional credit markets. The catalytic role of international financial institutions in addressing the SME financing gap is also examined. Institutions such as the EBRD, the World Bank, and the EIB contribute to mobilising private capital and strengthening financial infrastructure through risk-sharing programmes and development initiatives. The cross-border nature of modern fintech platforms adds a pronounced international dimension to the topic, as these solutions operate simultaneously across multiple jurisdictions, attracting global investors regardless of the maturity of the national financial system. The findings confirm that innovative financing mechanisms complement rather than replace traditional banking, serving market segments that remain beyond the reach of conventional credit institutions. Strategic partnership between private fintech platforms and international financial institutions is identified as the most promising vector for closing the global SME financing gap and supporting sustainable entrepreneurial development. The cross-border character of modern fintech platforms represents a key competitive advantage in the context of international economic relations, enabling SMEs to attract global investors and access capital independently of the level of development of their national financial systems. Prospects for further research include analysis of regulatory regimes for fintech platforms across jurisdictions and assessment of the impact of artificial intelligence and blockchain on SME financing models.