SME finance is benefiting from policy incentives in emerging markets, with capital inflows up 4.2% in Q The role of personal guarantees in the SME lending space Perhaps the most promising avenue for improving SME finance lies in digitalisation. Banks are leveraging technology and investing in digital credit evaluation tools that draw on new data sources to assess creditworthiness more efficiently. “These efforts are focused on developing efficient assessment models, ensuring that financial solutions are tailored to the specific needs of SMEs,” says Zekry. The SME finance sector’s short interest fell by 0.8% this week, suggesting improved investor confidence. This aligns with recent GDP growth revisions signaling stronger small-business activity.