Abstract: Financing for small and medium-sized enterprises (SME) is a challenge worldwide. Thus, it is worth considering how SME overcome the financing dilemma to use financial technology (Fintech). Using data from 31 provinces in China from 2013 to 2018, we construct a regional Fintech evaluation index system and examine the effects of Fintech on enterprise financing based on China's provincial panel data. The results show that Fintech can promote direct financing and form robust technology-driven disintermediation. Compared with capital-driven disintermediation, technology-driven disintermediation is more inclusive. We also conclude that more shadow banks and private enterprises, or higher digitalization, marketization, and securitization levels, will improve the efficiency of technology-driven disintermediation.

Keywords: Fintech; Financial disintermediation; SME credit; Inclusive finance; Online credit