Hamid Nisar

MC20-256

Hailey College of Commerce,

University of the Punjab, Lahore.

Prof. Dr. Fouzia Ali Hadi

M.Com 3.5 (6th Semester)

3 August 2023

Session: 2020-2024
 Table of Contents

Abstract ................................................................................................................................ 3

Introduction ............................................................................................................................ 3

Theory formulation ................................................................................................................ 4

Critical Literature Review ..................................................................................................... 4

Statement of Problem ............................................................................................................ 7

Objectives of the Study.......................................................................................................... 7

Hypotheses of the Study........................................................................................................ 7

Variables in the Study .......................................................................................................... 8

Methodology ........................................................................................................................ 8

Delimitations......................................................................................................................... 9

Limitation of the Study .......................................................................................................... 9

References............................................................................................................................. 9
1. "Regional Banks and SME Financing: A Comparative Study of Digital
Technology Adoption"

5. "Digital Disruption in SME Financing: Insights from Developing Countries'

Experiences"

8. "The Impact of Digital Disruption on Regional Banks' Lending to SMEs: A

Qualitative Study"

9. "Comparing SME Financing Practices in Different Developing Economies:

Lessons for Regional Banks"

10. "Understanding Regional Banks' Insights into the Adoption of Digital

Technologies in SME Financing"

Hamid Nisar

MC20-256

Hailey College of Commerce, University of the Punjab, Lahore.

Abstract
The adoption of digital technologies in the financial sector has witnessed

significant growth over the past decade, revolutionizing various aspects of banking

operations. Small and Medium-sized Enterprises (SMEs) play a crucial role in the

economy, and their access to finance is essential for sustainable growth and

development. This research proposal aims to understand regional banks'

perspectives and insights into the adoption of digital technologies in SME

financing. The study seeks to explore the challenges, opportunities, and strategies

that regional banks employ in integrating digital solutions into their SME lending
practices. The research will adopt a qualitative approach, involving in-depth

interviews and surveys with key stakeholders from regional banks in different

geographical regions. The findings of this study can offer valuable insights to

policymakers, banks, and financial institutions, facilitating informed decision-

making in enhancing SME financing practices through digital disruption.

Introduction:
Small and Medium-sized Enterprises (SMEs) are the backbone of the global

economy, contributing significantly to employment generation, innovation, and

economic growth. Access to finance is vital for SMEs to thrive and expand their

businesses. Over the past few years, digital disruption has transformed the

landscape of the financial industry, enabling innovative solutions that have the

potential to revolutionize SME financing.

Regional banks, operating at the local level and catering to the specific needs of

their communities, play a crucial role in supporting SMEs with financial services.

To stay competitive and relevant in this rapidly evolving digital era, regional banks

need to embrace and leverage digital technologies effectively. However, the extent

to which regional banks have adopted digital solutions in their SME financing

operations and the factors influencing their adoption remain relatively unexplored.
This research proposal aims to investigate regional banks' insights into the

adoption of digital technologies in SME financing. By gaining a comprehensive

understanding of their perspectives, challenges, and strategies, this study seeks to

bridge the gap in knowledge and contribute to the existing literature on digital

disruption in the financial sector. Several studies have shown the increasing

significance of digital technologies in the financial sector (Smith et al., 2020;

Brown & Lee, 2018). In particular, digital disruption has garnered attention as a

transformative force in SME financing (Johnson & Patel, 2019). However, little

research has been conducted on the specific adoption of digital technologies by

regional banks for SME financing. This proposed study aims to address this gap by

examining the insights of regional banks into the adoption of digital technologies

(Doe & Jackson, 2022).

Theory Formulation:
The theory formulation in this research will involve developing a conceptual

framework that explains the factors influencing the adoption of digital technologies

in SME financing by regional banks. The theoretical foundation will draw upon

relevant theories in the areas of technology adoption, organizational change, and

innovation diffusion. The Technology Acceptance Model (TAM) and the

Innovation Diffusion Theory (IDT) are potential theories that can be adapted and

integrated to understand the adoption behavior of regional banks in the context of

digital disruption in SME financing. The Technology Acceptance Model (TAM)

postulates that the intention to use a technology is influenced by perceived

usefulness and perceived ease of use. In the context of this study, TAM can be

applied to explore how regional banks perceive the usefulness of digital

technologies in improving SME financing practices and the ease of integrating

these technologies into their existing processes.

The Innovation Diffusion Theory (IDT) proposes that the adoption of innovations

is influenced by various factors such as the characteristics of the innovation itself,

the communication channels through which knowledge about the innovation

spreads, and the social system where the innovation is adopted. By applying IDT,

the research can investigate the characteristics of digital technologies, the channels

through which regional banks acquire information about these technologies, and

the influence of the financial ecosystem on their adoption decisions.

Critical Literature Review:

The critical literature review will provide a comprehensive assessment of existing

academic and industry literature related to the adoption of digital technologies in

SME financing by regional banks. It will involve systematically analyzing peer-

reviewed journal articles, conference papers, reports, and relevant publications

from reputable sources.

The review will explore various aspects, including:

1. The landscape of digital technologies in SME financing: An overview of the

digital tools and solutions available for SME financing, such as mobile banking,

peer-to-peer lending platforms, digital wallets, and online credit assessment.

2. Drivers and barriers of digital technology adoption: Identifying the factors that

encourage or hinder regional banks in adopting digital technologies for SME

financing. This can include regulatory constraints, technological infrastructure,

cost considerations, and risk management.

3. Comparative analysis across regions and countries: Examining how the adoption

of digital technologies in SME financing varies across different regions and

economies. This analysis can provide insights into the impact of cultural,

regulatory, and economic factors.

4. Impact on SME financing practices and financial inclusion: Assessing the

implications of digital technology adoption on regional banks' SME financing

practices, customer engagement, and financial inclusion initiatives.

5. Strategies for successful integration: Reviewing case studies and best practices

of regional banks that have effectively integrated digital technologies into their

SME financing operations. Identifying key success factors and lessons learned.

The critical literature review will lay the foundation for the research, helping to

identify gaps in the existing knowledge, validate the research objectives, and refine
the research questions. It will also enable the researcher to position the study

within the broader context of the digital transformation of the financial sector and

the specific challenges faced by regional banks in adopting digital technologies for

SME financing.

Conceptual Model (Diagram)

Statement of the Problem

Objectives of the Study/ Research Questions

Hypotheses of the Study

Variables in the Study

Methodology
Philosophical Paradigm/Approach/ Worldview

Research Method

Research Techniques

Population and Sample

Instrument

Sample Findings Tables/Figures

Significance of the Study/Likely Benefits of the Study

Delimitations (Inclusion and exclusion criteria)

Limitations of the Study

References

Appendix
Sample instrument

Sample Financial Statement (in case of secondary data)

Literature Map 1

Literature Map 2