Articles
DOI DOI: 10.5281/zenodo.18435009

FinTech and SME Credit in North Macedonia: Alternative-Data Risk Scoring Models and Regulatory Implications

Etem Iseni1
  1. 1 University of Tetovo, Tetovo, North Macedonia Str. Ilinden, nn., 1200 Tetova, North Macedonia

Abstract

Small and medium-sized enterprises (SMEs) in North Macedonia remain strongly
dependent on bank credit, while many firms face “thin-file” constraints that limit
access to finance. FinTech-enabled lending and alternative-data credit scoring
offer the potential to expand credit supply by reducing information asymmetries
and improving predictive accuracy, yet they also introduce legal, governance,
and consumer-protection risks—especially around privacy, explainability, bias,
and model risk management. This study develops a structured framework for
evaluating alternative-data scoring models for SME credit in North Macedonia and
derives regulatory implications aligned with European supervisory expectations.
Using standards-based control mapping (EBA Guidelines on loan origination and
monitoring; World Bank credit scoring guidance; IMF supervisory approaches;
BIS research on privacy regulation), the paper proposes proportionate rules
for data governance, transparency, and risk controls. The results indicate that
alternative data can enhance inclusion and portfolio quality when integrated with
robust governance, while weak oversight risks discriminatory outcomes and
systemic vulnerabilities.

How to Cite

Iseni, E. (2026). FinTech and SME Credit in North Macedonia: Alternative-Data Risk Scoring Models and Regulatory Implications. Transnational Academic Journal of Economics, 3(1), 15–26. https://doi.org/10.5281/zenodo.18435009
Endnote/Zotero/Mendeley (RIS) BibTeX

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