ARCHIVES
VOL. 8, ISSUE 3 (2026)
Data-driven approaches to expanding SME credit access while managing portfolio quality
Authors
Md Rezwan UR Rahman, Mohammad Nurul Islam, Rasheda Yasmin, Mohammad Mohibul Alam, Zakaria Ferdous
Abstract
Small and medium-sized enterprises (SMEs)
remain underserved by formal credit markets even though they are central to
employment, enterprise renewal and local economic resilience. Traditional bank
underwriting often depends on collateral, audited financial statements and
relationship history, which can exclude viable firms with thin files or
irregular cash flows. This review develops an applied decision framework
showing how banks and fintech-enabled lenders can widen SME credit access
without weakening portfolio quality. Using a structured integrative review of
recent peer-reviewed literature on fintech credit, machine learning-based
credit assessment, alternative data, explainable artificial intelligence and
SME financing constraints, the paper synthesizes evidence from finance,
business analytics and operations research. The findings indicate that
data-driven lending can improve borrower segmentation, reduce information
asymmetry and support earlier risk detection, but only when predictive models
are embedded in disciplined data governance, transparent decision rules, human
override protocols, portfolio limits and continuous monitoring. The paper
contributes the Responsible SME Credit Expansion and Portfolio Quality
(R-SCEPQ) framework, which connects data inputs, risk modelling,
explainability, decision policy, portfolio feedback and governance. For banks
in emerging and developing markets, the framework offers a practical pathway
for using digital traces, transaction histories and supply-chain signals to
expand inclusion while preserving risk-adjusted returns and regulatory
confidence.
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Pages:21-29
How to cite this article:
Md Rezwan UR Rahman, Mohammad Nurul Islam, Rasheda Yasmin, Mohammad Mohibul Alam, Zakaria Ferdous "Data-driven approaches to expanding SME credit access while managing portfolio quality". International Journal of Management and Commerce, Vol 8, Issue 3, 2026, Pages 21-29
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