Research On The Mechanism And Effect Of Bank Digitization To Ease The Financing Difficulties Of SMEs

The difficulty and high cost of financing for small and medium-sized enterprises are the main reasons for the financing difficulties of small and medium-sized enterprises.With the rapid development of digital economy,the level of digital operation and management of each economy has gradually matured.For banking institutions that provide important credit resources to small and medium-sized enterprises,the application of digital technologies such as big data,cloud computing and blockchain can improve the bank’s ability to identify signals and prevent and control risks,which can reduce the bank’s rejection of loans to small and medium-sized enterprises to a certain extent.Therefore,in order to improve the credit extension of banks to small and medium-sized enterprises and reduce the financing pressure of small and medium-sized enterprises,it is necessary to clarify how banks’ digitalization can overcome the information asymmetry with small and medium-sized enterprises,how to identify and prevent risks and expand the loan scale to small and medium-sized enterprises,so as to provide theoretical and empirical basis for alleviating the credit contradiction between banks and small and medium-sized enterprises.This paper first combs the current domestic and foreign literature from three aspects:Bank digitalization,financing of small and medium-sized enterprises,bank digitalization and financing of small and medium-sized enterprises,points out the shortcomings of the existing research,and then makes a theoretical analysis on the role of bank digitalization in alleviating the financing difficulties of small and medium-sized enterprises,and then uses empirical analysis to analyze the effect of bank digitalization on alleviating the financing difficulties of small and medium-sized enterprises.Finally,from the perspective of banks Enterprises,governments and other different subjects put forward corresponding suggestions to further use digital technology to optimize the financial service environment of small and medium-sized enterprises and solve the financing problems of small and medium-sized enterprises.Through the research,this paper finds that using the expected profit function of the bank to build the proportion model of the bank choosing to lend to different risk types of enterprises,we can judge the changes of the bank’s risk preference before and after the digital transformation.When banks lend through the traditional credit mode,the proportion that banks choose to lend to low-risk enterprises is higher than that to high-risk enterprises,which has a crowding out effect on high-risk enterprises such as small and medium-sized enterprises;In the early stage of bank digital transformation,the crowding out effect of banks on small and medium-sized enterprises is greater;In the late stage of bank digital transformation,the bank’s exclusion of small and medium-sized enterprises decreased,and the bank’s risk preference changed.The digital transformation of banks plays a positive role in expanding the long tail market of small and medium-sized enterprises.In the empirical aspect,the panel threshold regression model is used to test that there is a nonlinear correlation between the impact of bank digitalization on the loan scale of small and medium-sized enterprises.Under the background of immature development of digital economy,when banks are in the initial stage of digital transformation,they can not only expand the loan scale of small and medium-sized enterprises,but also increase the crowding out effect of financial services to small and medium-sized enterprises.In the mature stage of the development scale of the digital economy,the digital transformation of banks is deepening.At this time,there is a positive role between the digital bank and the loan scale of small and medium-sized enterprises.Therefore,the empirical part illustrates the correctness of the theoretical model.From the perspective of possible innovations,the article focuses on the application of digital technology at the bank level,focuses on analyzing the mechanism of bank digitalization in dealing with the financing difficulties and high financing costs of small and medium-sized enterprises,and deduces the specific path of the impact of bank digitalization on the loan preference of small and medium-sized enterprises through the establishment of theoretical models.The selected measurement methods of bank digitalization level and the measurement methods of regression models are rarely used in this research field;However,due to the unavailability of some data,there is insufficient support for data demonstration,which leaves room for future research and improvement.