Digital Transformation Strategies of Commercial Banks and Financing Services Availed by Small and Medium Enterprises

Althea  U. Denuevo,; Yafeng  Jiang,

Digital Transformation Strategies of Commercial Banks and Financing Services Availed by Small and Medium Enterprises

Abstract:

This paper examined the digital transformation strategies of commercial banks and financing services availed by small and medium-sized enterprises (SMEs). Against the backdrop of fintech development, it analyzed how digital tools (such as big data risk control and blockchain-based supply chain finance) mitigate information asymmetry between banks and enterprises. The research finds that digital transformation significantly enhances SMEs' financing accessibility, though regional disparities and technology adaptation issues persist. The results showed that significant differences exist in innovation and collaboration strategy when classified by number of employees, and employee empowerment and upskilling when classified by loan extended. Significant difference was detected in financing services when grouped by size of business. Commercial banks should strengthen technological investments and scenario-based service design, while policymakers should improve data-sharing mechanisms. This research provided empirical evidence for integration of fintech and inclusive finance, offering practical value for commercial banks' strategic transformation and alleviating SMEs' financing difficulties

References:

Berman, T., Schallmo, D., & Kraus, S. (2024). Strategies for digital entrepreneurship success: The role of digital implementation and dynamic capabilities. European Journal of Innovation Management, 27(9), 198–222.
Boustani, N. M. (2022). Artificial intelligence impact on banks’ clients and employees in an Asian developing country. Journal of Asia Business Studies, 16(2), 267–278.
Cindori, S., Mostafa, A. M. M., Malushko, E. Y., Deryugina, T. V., Mokhov, A. A., Almosov, A., ... & Timacheva, E. (2021). Peculiarities of development of digital financial ecosystem. SHS Web of Conferences, 109, 01004.
Fang, Y., & Wang, Q. (2025). Research progress on the impact of digital finance on commercial bank credit supply and risk. Research on Financial and Economic Issues, (01), 15–28.
Guo, P. H. (2023). Innovating and reshaping data governance systems: A case study of financial data governance. Economic Management, 45(01), 25–42.
Hegde, A., Bhowmik, B., Bennehalli, S., & Vakkund, S. (2025). Louvain community-based label assignment for reject inference in peer-to-peer lending. International Journal of Data Science and Analytics, 1–23.
Jia, Y. R., Chen, Y. Q., & Guo, P. (2023). Bank digital transformation, financing constraints, and performance of borrowing enterprises. Journal of Yunnan University of Finance and Economics, 39(05), 62–76.
Jia, Y. R., Lyu, J., & Guo, P. (2024). Bank digital transformation, business structure, and operational stability. Financial Theory & Practice, (03), 51–62.
Jiang, Y. F. (2024). Research on the models, challenges, and strategies of commercial bank digital transformation driven by fintech. Journal of Insurance Vocational College, 38(06), 53–61.
Ling, H. C., Yang, Z., & Chen, J. (2025). How digital inclusive finance empowers enterprise digital transformation. Review of Economy and Management, 41(01), 69–82.
Maravilla, V., Jr., & Gantalao, C. S. (2019). E-tourism adoption of the travel agencies in Cebu City, Philippines. Journal of Economics and Business, 2(3).
Meng, X. J., Wang, Y., & Li, Q. (2024). Research on bank transformation and response strategies under fintech disruption. Price: Theory & Practice, (06), 202–207.
Sun, Y., & Zhang, Q. (2024). Navigating the digital transformation of commercial banks: Embracing innovation in customer emotion analysis. Journal of the Knowledge Economy, 1–22.
Wang, Y. (2024). Research on the driving mechanism of digital transformation in SMEs: Based on the technology acceptance model (TAM) perspective. Communication of Finance and Accounting, (16), 155–160.
Wu, W. Y., Jiang, H., & Tang, S. F. (2025). Bank digitalization, risk preference, and loan allocation: Micro evidence from China’s banking sector. Systems Engineering - Theory & Practice, 45(01), 54–72.
Ye, C. Y., Yang, L., & Guan, X. (2023). Research on the innovative development path of rural commercial banks from the perspective of fintech. Contemporary Economic Management, 45(08), 80–89.
Zhang, X. H. (2024). The internal logic and realization path of digital economy accelerating the formation of new quality productivity. Journal of Southwest University (Social Sciences Edition), 50(03), 1–14.