Fintech offers “tremendous” potential for cash-starved small and medium enterprises and the global economy, but risks such as the limited protection of retail investors and the partial lack of regulation need to be taken into account, according to the World Economic Forum.

In a white paper published on October 23 on the future of fintech, the forum, based in Cologny, Switzerland, concludes that fintech companies could benefit the global economy by helping close the $2 trillion funding gap for millions of SMEs worldwide.