Does bank FinTech spur productivity of SMEs?

Financial technology (FinTech) has promoted the popularization of intelligent banking services and profoundly impacted the development of small and medium-sized enterprises (SMEs). Based on manually collected over 20,000 data on FinTech patents of banks and data from Chinese A-share listed firms in the Growth Enterprise Market board from 2010 to 2020, we investigate the effects of Bank FinTech on the total factor productivity (TFP) of SMEs. Our results demonstrate that Bank FinTech significantly boosts the TFP of SMEs. The conclusion remains unchanged after conducting a series of robustness tests. Furthermore, we find that strengthening external financial regulation and internal digitalization in SMEs enhance the driving effect of FinTech on the TFP of SMEs. Moreover, heterogeneity analysis indicates that Bank FinTech is particularly beneficial for promoting TFP in non-state-owned SMEs, SMEs with large sizes and old age, and SMEs in the East and with dense bank branches. Our research offers empirical evidence on how Bank FinTech influences SMEs' production efficiency, which is crucial for the technological catch-up of SMEs and for enhancing the ability of Bank FinTech to serve the real economy.