FinTech Lending

Posted: 10 Nov 2022

See all articles by Tobias Berg

Tobias Berg

Goethe University Frankfurt; Centre for Economic Policy Research (CEPR); Leibniz Institute for Financial Research SAFE

Andreas Fuster

École Polytechnique Fédérale de Lausanne (EPFL); Swiss Finance Institute; Centre for Economic Policy Research (CEPR)

Manju Puri

Duke University - Fuqua School of Business; NBER

Multiple version iconThere are 4 versions of this paper

Date Written: November 1, 2022

Abstract

In this article, we review the growing literature on financial technology (FinTech) lending—the provision of credit facilitated by technology that improves the customer–lender interaction or used in lenders’ screening and monitoring of borrowers. FinTech lending has grown rapidly, though in developed economies like the United States it still accounts for only a small share of total credit. An increase in convenience and speed appears to have been more central to FinTech lending's growth than improved screening or monitoring, though there is certainly potential for the latter, as is the case for increased financial inclusion. The COVID-19 pandemic has shown potential vulnerabilities of FinTech lenders, although in certain segments they have displayed rapid growth.

Suggested Citation

Berg, Tobias and Fuster, Andreas and Puri, Manju, FinTech Lending (November 1, 2022). Annual Review of Financial Economics, Vol. 14, pp. 187-207, 2022, Available at SSRN: https://ssrn.com/abstract=4267962 or http://dx.doi.org/10.1146/annurev-financial-101521-112042

Tobias Berg

Goethe University Frankfurt ( email )

House of Finance
Grueneburgplatz 1
Frankfurt am Main, Hessen 60323
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Leibniz Institute for Financial Research SAFE ( email )

House of Finance
Theodor-W.-Adorno-Platz 3
Frankfurt, 60323
Germany

Andreas Fuster

École Polytechnique Fédérale de Lausanne (EPFL) ( email )

Quartier UNIL-Chamberonne
Bâtiment Extranef
CH-1015 Lausanne
Switzerland

Swiss Finance Institute ( email )

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Manju Puri (Contact Author)

Duke University - Fuqua School of Business ( email )

100 Fuqua Drive
Box 90120
Durham, NC 27708-0120
United States
919-660-7657 (Phone)

NBER

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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