Alternative Financing through FinTech Platforms: Financial Development of Small and Medium-Sized Enterprises in Georgia

Ana Chkhikvadze

Journal number 1 ∘ Ana Chkhikvadze ∘
Alternative Financing through FinTech Platforms: Financial Development of Small and Medium-Sized Enterprises in Georgia

This research was supported by the Shota Rustaveli National Science Foundation of Georgia under Grant No. PHDF24-1261.

DOI: 10.52340/ekonomisti.2026.01.13

Expanded Summary

Access to finance remains one of the main constraints on the development of small and medium-sized enterprises, particularly in economies where traditional bank lending constitutes the primary source of external financing. In recent years, FinTech platforms have expanded the landscape of alternative finance by introducing mechanisms that simplify financial intermediation, reduce operational costs, and accelerate access to funding.

The purpose of this paper is to assess the role of alternative financing through FinTech platforms in the process of financial development of small and medium-sized enterprises, by identifying the mechanisms through which FinTech solutions influence access to finance, liquidity management, and growth opportunities.

The study is based on a systematic review of academic literature and documentary analysis, and, in the context of Georgia, draws on reports from the National Bank and international organizations. The findings indicate that FinTech-based financing is particularly effective in supporting short-term liquidity needs and streamlining financing processes; however, its long-term impact depends on the quality of the regulatory framework, market competitive dynamics, and the level of financial and digital literacy among small businesses.

Keywords: FinTech platforms, alternative financing, small and medium-sized enterprises (SMEs), financial inclusion.

EKONOMISTI The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University

DOI: 10.52340/EKONOMISTI DOI: 10.36172/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 1 ∘ Ana Chkhikvadze ∘ Alternative Financing through FinTech Platforms: Financial Development of Small and Medium-Sized Enterprises in Georgia This research was supported by the Shota Rustaveli National Science Foundation of Georgia under Grant No. PHDF24-1261. DOI: 10.52340/ekonomisti.2026.01.13 Expanded Summary Access to finance remains one of the main constraints on the development of small and medium-sized enterprises, particularly in economies where traditional bank lending constitutes the primary source of external financing. In recent years, FinTech platforms have expanded the landscape of alternative finance by introducing mechanisms that simplify financial intermediation, reduce operational costs, and accelerate access to funding. The purpose of this paper is to assess the role of alternative financing through FinTech platforms in the process of financial development of small and medium-sized enterprises, by identifying the mechanisms through which FinTech solutions influence access to finance, liquidity management, and growth opportunities. The study is based on a systematic review of academic literature and documentary analysis, and, in the context of Georgia, draws on reports from the National Bank and international organizations. The findings indicate that FinTech-based financing is particularly effective in supporting short-term liquidity needs and streamlining financing processes; however, its long-term impact depends on the quality of the regulatory framework, market competitive dynamics, and the level of financial and digital literacy among small businesses. Keywords: FinTech platforms, alternative financing, small and medium-sized enterprises (SMEs), financial inclusion.