Host: For most small businesses, the hard part is not the idea. It is getting finance, payments and credit to work for them. Fintech is closing that gap across the region, from faster access to funding to easier onboarding and digital payments. Our guest has advised SMEs and fintech firms on strategy and licensing since 2018. We have Fadi Al Awami with us today, Financial and Business Adviser and Fintech Consultant at the Consultation Centre. Fadi, welcome to the show. Where is the impact of fintech on SMEs biggest right now?
Fadi Al Awami: First of all, thanks for having me again. I think fintech's impact on SMEs sits in two pillars, payments and lending. On payments, as per some reports from 2025, around 80 to 85% of total transactions were done through electronic payment, so it is very important that SMEs engage in electronic payments. Fintechs help SMEs build the infrastructure required to accept electronic payments, which also helps them expand their revenue and sales and get more clients. On the lending side, fintechs facilitate for both the client and the SME, through buy now pay later and through direct alternative lending solutions offered directly to SMEs.
Host: How is fintech changing the way a small business gets credit today?
Fadi Al Awami: It is not only about access, it is also about the ease of doing the transaction. The bank process usually takes a longer time, and SMEs often cannot fulfil the requirements quickly, perhaps because of a lack of experience. SMEs also usually apply for funding when they have an urgent need, so they cannot afford a long wait for approval. Fintechs usually have an easier way to get approval. The requirements are not as heavy as the banks', and they have structures that make it easier for SMEs to access finance.
Host: What can fintechs see about an SME that banks cannot?
Fadi Al Awami: Most fintechs have the same access to information that banks have, because the client provides that information. But some fintechs, for example those whose activity is point of sale or systems provided to restaurants, usually have more detail through their systems. That gives them a better idea of the business itself and the trend of the business, including any potential increase in costs, not only on a monthly basis but sometimes daily. That gives them a privilege in understanding the client in a better way, and it definitely reflects on the credit decisions they take.
Host: What has digital changed for the small merchant in payments?
Fadi Al Awami: Access to electronic payment is the crucial part that the whole digital transformation gives the small merchant. It has become much more flexible to have the required infrastructure to accept payments. As we mentioned, around 85% of total transactions, which I think is above 14 billion Saudi riyals, are now accessible even to small SMEs. With fintechs it becomes more flexible for those SMEs, whereas banks previously focused more on large corporates.
Host: Banks are more traditional, so it takes more time. What should an SME owner check before choosing a fintech?
Fadi Al Awami: Cost is always a very important factor. Sometimes SMEs accept a solution offered by a fintech even if it is high cost, because it facilitates the business. But sometimes the cost becomes a crucial part that reflects on total performance and has a negative impact on the income statement. So balancing the high cost against the impact on the business overall is very important. Cost is a very important factor SMEs need to look at whenever they decide to go for a fintech.
Host: Where does fintech still fall short for SMEs?
Fadi Al Awami: If we look at alternative finance solutions, fintechs still do not have enough tolerance if there is any difficulty with a client's cash flow. When the due date comes to settle the loan, the SME needs to settle immediately. With the current situation, and sometimes seasonal times for a business, the SME's cash flow is affected and they may need more time to settle their payment. Banks usually have more tolerance and can wait, and sometimes they can restructure. I believe fintechs still do not have this kind of tolerance. I think that is very important to consider, especially at these times, because SMEs are part of the whole economy. In Saudi Arabia, for example, SMEs have more focus from the government and were one of the main pillars of Vision 2030, so we need to balance these two factors.
Host: Last thing: one piece of advice you would give an SME owner.
Fadi Al Awami: I always say they have to understand their cash flow requirements. It is not only about increasing sales, because increasing sales sometimes needs more credit terms. They may sell on credit, and that affects the cash flow. So they really need to understand their cash flow requirements and make sure they are not delaying any payment. They should also focus on the collection side. And they need to leverage the advantages that fintechs offer to the overall market, and specifically to SMEs.
Host: Fadi, thank you so much for joining us today on the show.
Fadi Al Awami: It was my pleasure.
