Fintech and Big Tech Credit: A New Database

35 Pages Posted: 23 Nov 2020

See all articles by Giulio Cornelli

Giulio Cornelli

Bank for International Settlements (BIS)

Jon Frost

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

Leonardo Gambacorta

Bank for International Settlements (BIS); Centre for Economic Policy Research (CEPR)

P. Raghavendra Rau

University of Cambridge

Robert Wardrop

University of Cambridge - Cambridge Centre for Alternative Finance

Tania Ziegler

University of Cambridge - Cambridge Centre for Alternative Finance

Multiple version iconThere are 2 versions of this paper

Date Written: September 25, 2020

Abstract

Fintech and big tech platforms have expanded their lending around the world. We estimate that the flow of these new forms of credit reached USD 223 billion and USD 572 billion in 2019, respectively. China, the United States and the United Kingdom are the largest markets for fintech credit. Big tech credit is growing fast in China, Japan, Korea, Southeast Asia and some countries in Africa and Latin America. Cross-country panel regressions show that such lending is more developed in countries with higher GDP per capita (at a declining rate), where banking sector mark-ups are higher and where banking regulation is less stringent. Fintech credit is larger where there are fewer bank branches per capita. We also find that fintech and big tech credit are more developed where the ease of doing business is greater, and investor protection disclosure and the efficiency of the judicial system are more advanced, the bank creditto-deposit ratio is lower and where bond and equity markets are more developed. Overall, alternative credit seems to complement other forms of credit, rather than substitute for them.

Keywords: fintech, big tech, credit, data, technology, digital innovation.

JEL Classification: E51, G23, O31.

Suggested Citation

Cornelli, Giulio and Frost, Jon and Gambacorta, Leonardo and Rau, P. Raghavendra and Wardrop, Robert and Ziegler, Tania, Fintech and Big Tech Credit: A New Database (September 25, 2020). BIS Working Paper No. 887, Available at SSRN: https://ssrn.com/abstract=3707437

Giulio Cornelli

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Jon Frost (Contact Author)

Bank for International Settlements ( email )

Basel
Switzerland

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

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Leonardo Gambacorta

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

P. Raghavendra Rau

University of Cambridge ( email )

Cambridge Judge Business School
Trumpington Street
Cambridge, Cambridgeshire CB21AG
United Kingdom
3103626793 (Phone)

HOME PAGE: http://www.raghurau.com/

Robert Wardrop

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

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Tania Ziegler

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

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

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