SMALL BUSINESS LENDING WITH FINANCIAL ENGINEERING TOOLS: GLOBAL AND DOMESTIC EXPERIENCE
This paper examines the specifics of small business lending using financial engineering tools at the global and domestic levels. It analyzes the role of small businesses in the modern economy: their contribution to employment, innovation, and sustainable growth, as well as the challenges of access to credit amid the global transformation of the financial sectorA review of global practices has identified key trends in the implementation of financial engineering: a transition to innovative hybrid lending schemes; integration of digital technologies; use of structured products; public-private partnerships; and support through guarantees and subsidies.
Particular attention is paid to the Russian context: the dynamics of the SME sector's development, the impact of digitalization of banking processes, the use of AI, machine learning, blockchain, and API initiations to improve the transparency and efficiency of lending, and the role of government support in developing an adaptive financing model. The article presents a comparative table of international SME lending models and the Russian model, illustrating similarities and differences in institutional frameworks, technological foundations, regulatory environments, and performance.
The key findings indicate that the share of digital SME loan applications continues to grow, and the overall volume of bank lending is demonstrating an upward trend due to engineering and digital approaches. The implementation of securitization, hedging, crowdlending, and the integration of financial platforms contribute to cost reduction and expanded access to resources for small businesses, including microenterprises with minimal collateral.
The conclusion emphasizes that financial engineering is becoming a strategic area for modernizing credit relations: it provides more flexible and adaptable credit products, increases financial inclusion, manages risks, and improves the investment activity of SMEs. Further development of unified standards for engineering tools, increased digitalization of processes, and the further development of guarantee and crowdfunding institutions within the framework of state support and market mechanisms are recommended.
Melnikova N.S., Erofteeva E.V. “Small business lending with financial engineering tools: global and domestic experience”, Research Result. Economic Research, 11(4), 99-108, DOI: 10.18413/2409-1634-2025-11-4-0-9
While nobody left any comments to this publication.
You can be first.
Bank of Russia. Volume of loans provided to small and medium-sized businesses: Bank of Russia statistics, available at: https://www.cbr.ru/statistics/bank_sector/sors/ (Accessed 04 December 2025).
2. Vaganova O.V., Bykanova N.I., Konyshina L.A., Gordya D.V. (2020). “The impact of new financial technologies on the development of the domestic financial market”, Financial Economy, No. 6, pp. 133-139
3. Vaganova O.V., Melnikova N.S., Buryak A.S. (2025). “Crowdfunding in Russia: Current problems and future development prospects”, Economic and Humanitarian Sciences, No. 6 (401), pp. 29-38, DOI 10.33979/2073-7424-2025-401-6-29-38.
4. Vaganova O.V., Talimova L.A.,
Gordya D.V. (2023). “Digital banking: risks and opportunities for banks and their clients”, In the collection: Current problems of development of economic, financial and credit systems. Collection of materials of the XI International scientific and practical conference, Belgorod, pp. 14-19
5. European Bank for Reconstruction and Development, Connecting the Dots: Unlocking the Potential of SMEs, London: EBRD, 2023.
6. European Securities and Markets Authority, ESMA Market Report, Crowdfunding
in the EU 2024, Paris: ESMA, 2025.
7. Ivanova A.A. (2024). “Problems of access of SMEs to bank lending”, Money and credit,
No. 11, Pp. 42–55.
8. Melnikova N.S. (2017), “Methodology for Determining the Efficiency of Business Process Reengineering in a Commercial Bank Based on a Systems Approach”, Scientific Result. Economic Research, Vol. 3, No. 1, Pp. 66-72,
DOI 10.18413/2409-1634-2017-3-1-66-72.
9. Melnikova N.S. (2025). “Theoretical Foundations of the Emergence of Financial Engineering, Definition of Its Essence and Directions of Development”, Bulletin of the Samara State University of Economics, No. 8(250),
Pp. 128-138.
10. Mutalimov V. R. (2021). “Assessing regional growth of small business in Russia with regard to sustainability”, Entrepreneurial Business and Economics Review, Vol. 9, No. 1, P. 157–176.
11. Organization for Economic Co-operation and Development, Financing SMEs and Entrepreneurs 2023: Highlights, Paris: OECD Publishing, 2023.
12. Organization for Economic Co-operation and Development, Financing SMEs and Entrepreneurs 2024: An OECD Scoreboard, Paris: OECD Publishing, 2024.
13. Karlovskaya E.A., Vaganova O.V., Melnikova N.S., Bykanova N.I. (2024). “Forecasting modeling of the development of the lending and crowdfunding market in the context of an increase in the Bank of Russia key rate”, Economy. Informatics, Vol. 51, No. 2, Pp. 379–392.
14. Federal State Statistics Service, Small and Medium-Sized Entrepreneurship in Russia: Statistical Digest, Moscow: Rosstat, 2024.
15. Chernousova K.I., Melnikova N.S. (2024). “Prospects for the Development of Innovative Technologies in the Banking Environment”, Statistical Analysis of the Socio-Economic Development of Subjects of the Russian Federation: Collection of Scientific Papers of the XI All-Russian Scientific and Practical Conference, Bryansk: BGITU, Pp. 193-196.
16. Federal State Statistics Service, Small and Medium-Sized Entrepreneurship in Russia, Moscow: Rosstat, 2024.
17. World Bank, Small and Medium Enterprises (SMEs) Finance, available at: https://www.worldbank.org/en/topic/smefinance (Accessed 4 December 2025).
18. World Bank Group, MSME Finance Gap: Assessment of the Shortfalls and Opportunities in Financing Micro, Small and Medium Enterprises, Washington: World Bank Group, 2017.