Introduction The title of this chapter accurately reflects its content: it covers current developments in efinance with the initial emphasis being on overall global trends. The second half of the chapter is an exploration of how these developments are likely to impact SMEs in developing countries in the near future. There is a thorough coverage of relevant e-finance topics including: Internet banking; Internet payments; international electronic trade and finance systems; online credit

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... n and credit insurance systems; private equity mobilisation and microfinance initiatives. The chapter is clearly explained and well written, and gives a good introduction to the e-finance issues relevant to SMEs, and in particular to those issues likely to be more relevant to SMEs in developing countries. The chapter has a wide-ranging global coverage and discusses issues impacting on both OECD and developing countries; there are many useful examples of e-finance initiatives in developing countries. The chapter is based on information made available at two UNCTAD e-finance related events held in 2001 and 2002 respectively. Finance is an information-intensive industry, which has the potential to alter greatly as a result of the Internet. The chapter adopts a narrow definition of e-finance as "financial services delivered online through Internet fixed and wireless networks to enterprises and households", though it also covers the off-line use of electronic devices fo r payment transactions in remote areas. E-finance includes Internet banking and payments, e-brokerage, e-insurance and other related services. Internet technologies are used in all aspects of the financial services industry, including retail and wholesale, back office and front office. In the near future the distinction between finance and e-fina nce will become less relevant as the core financial technology becomes Internet-based. The chapter identifies four lessons that have been learnt from the early phases of efinance adoption: