Fintech Credit Markets Around the World: Size, Drivers and Policy Issues

21 Pages Posted: 30 Nov 2018

See all articles by Stijn Claessens

Stijn Claessens

Bank for International Settlements (BIS)

Jon Frost

Bank for International Settlements; De Nederlandsche Bank; University of Cambridge - Cambridge Centre for Alternative Finance

Grant Turner

Reserve Bank of Australia

Feng Zhu

Ant Financial

Date Written: September 1, 2018

Abstract

Fintech credit has grown rapidly around the world in recent years, but its size still varies greatly across economies. Differences reflect economic development and financial market structure: the higher a country’s income and the less competitive its banking system, the larger is fintech credit activity. Fintech credit volumes are also greater in countries with less stringent banking regulation. Fintech credit offers an alternative funding source for businesses and consumers, and may improve access to credit for underserved segments. It may enhance the efficiency of financial intermediation. However, as shown by some failures and conduct problems, it also gives rise to a number of challenges for regulators. Many of these are centred on ensuring adequate consumer and investor protection. For financial stability, challenges and benefits may arise if the fintech credit sector grows further, or if banks make greater use of similar technological innovations in their credit provision.

JEL Classification: E51, G23, O31

Suggested Citation

Claessens, Stijn and Frost, Jon and Turner, Grant and Zhu, Feng, Fintech Credit Markets Around the World: Size, Drivers and Policy Issues (September 1, 2018). BIS Quarterly Review September 2018, Available at SSRN: https://ssrn.com/abstract=3288096

Stijn Claessens (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

Jon Frost

Bank for International Settlements ( email )

Basel
Switzerland

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Grant Turner

Reserve Bank of Australia ( email )

65, Martin Place
Sydney, NSW 2000
Australia

Feng Zhu

Ant Financial ( email )

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