RUAHA CATHOLIC UNIVERSITY

The Sustainable Development Goals are still being hampered by a severe lack of funding for small and mediumsized businesses (SMEs) in developing nations as well as a more general shortage of development funds. Development Goals (SDGs). Fintech (financial technology) is expected to transform business and development finance by reshaping how funding is accessed and delivered. This study conducts a systematic review of extant literature to synthesize theoretical perspectives and empirical evidence on how fintech innovations are addressing traditional market failures in credit provision for businesses. The review encompasses 78 peer-reviewed articles, reports from key multilateral institutions, and working papers published from 2015 through 2024. Findings indicate that fintech, primarily through alternative lending platforms, mobile money, and blockchain-based solutions, mitigates information asymmetries, reduces transaction costs, and enhances financial inclusion for previously underserved SMEs. This has tangible positive implications for entrepreneurship, job creation, and economic growth, thereby contributing to broader development objectives. The review also highlights critical risks, such as widening digital divides, embedded algorithmic bias, data privacy vulnerabilities, and threats to financial stability. It is concluded that while fintech is not a panacea, it represents a powerful complementary tool within the development finance architecture. The originality of this review lies in its explicit integration of fintech business financing models with macro-development financing goals, providing a synthesized framework for researchers, policymakers, and development practitioners.

Fintech, SME Financing, Development Finance, Financial Inclusion, Systematic Review, Alternative Lending, SDGs.