Fintech Lending: A Study of Expectations Versus Market Outcomes

Forthcoming in Review of Banking & Financial Law

35 Pages Posted: 17 Oct 2018

See all articles by Vincent DiLorenzo

Vincent DiLorenzo

St. John's University - School of Law

Date Written: September 10, 2018

Abstract

This paper documents the expectations for the fintech lending industry, which has emerged in this decade, and compares such expectations to market outcomes. It presents an evidence based analysis for policy making decisions. Part one of the paper explores expectations – possible benefits and risks of fintech lending – through large-scale surveys and interviews of industry, consumer and government stakeholders. Part two of the paper examines market outcomes – benefits and risks that have been realized or failed to materialize, as documented by studies of substantial data sets of various types of fintech loans. This includes examination of expanded access to credit, lower costs, predatory terms, fair lending risks, and lack of transparency. After comparing expectations and outcomes, the paper explores policy implications, particularly the implications for chartering of special purpose national banks by the U.S. Comptroller of the Currency.

Keywords: FinTech, TechFin, Financial Regulation, Supervision, RegTech, Lending, Perr-to-Peer Lending

JEL Classification: G20, G21, G23, G28, G38, K20, L5, L50, O30

Suggested Citation

DiLorenzo, Vincent, Fintech Lending: A Study of Expectations Versus Market Outcomes (September 10, 2018). Forthcoming in Review of Banking & Financial Law . Available at SSRN: https://ssrn.com/abstract=3247112 or http://dx.doi.org/10.2139/ssrn.3247112

Vincent DiLorenzo (Contact Author)

St. John's University - School of Law ( email )

8000 Utopia Parkway
Jamaica, NY 11439
United States

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