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I’m trying to study for my Economics course and I need some help to understand this question.

My topic: What is the impact of financial technology on the loan provision of SMEs?

Main idea: Although small and medium-sized enterprises have not received much attention, they account for most of a country’s GDP. Due to the lack of financing channels for many enterprises, and the inability to grow will strangle the economy, financial technology has a place.

Traditional banks have been cautious about lending to SMEs because of the high risk and the lack of indicators to measure the value of credit. Fin-tech companies have algorithms that use other data, such as owners’ financial status and credit records, to quickly assess SMEs and provide them with micro loans.

Instructions and sample in the document that i attached.

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