What Determines Cross-Country Differences in Fintech and Bigtech Credit Markets?

IESEG Working Paper Series 2021-ACF-02

42 Pages Posted: 29 Apr 2021

See all articles by Oskar Kowalewski

Oskar Kowalewski

IESEG School of Management; LEM - CNRS 9221

Paweł Pisany

Polish Academy of Science

Emil Slazak

Warsaw School of Economics (SGH)

Date Written: April 28, 2021


This study is an investigation of the determinants of the development of technology-driven alternative credit markets, that is, fintech and bigtech credit. Using a data sample from 94 countries from 2013–2019, we confirmed the relevance of the availability of credit data, both the traditional and alternative types, with the latter being known as the so-called “digital footprint.” Furthermore, we have provided evidence to confirm the positive role of strengthening Internet privacy protections in fostering the development of the fintech credit market, which may not necessarily be the case for the bigtech credit market. We have also shown that the growth of the fintech and bigtech credit market is preceded by a rising paytech services market. Furthermore, we have found that the development of fintech credit services is fostered by the strength of both principal institutions, like the rule of law, and credit-specific institutions, especially in terms of insolvency framework effectiveness, while, for the bigtech credit market, only the latter matters. Interestingly, we have also found that various national cultural profiles can boost the development of fintech and bigtech credit services. Lastly, we have shown that the fintech credit market develops faster in countries characterized by high levels of societal distrust toward banks and that the opposite seems to be the case with the bigtech credit market.

Keywords: alternative credit, fintech, bigtech, innovation, culture, trust, data access

JEL Classification: G21, G23, L26, O30

Suggested Citation

Kowalewski, Oskar and Pisany, Paweł and Slazak, Emil, What Determines Cross-Country Differences in Fintech and Bigtech Credit Markets? (April 28, 2021). IESEG Working Paper Series 2021-ACF-02, Available at SSRN: https://ssrn.com/abstract=3835917 or http://dx.doi.org/10.2139/ssrn.3835917

Oskar Kowalewski (Contact Author)

IESEG School of Management ( email )

1 Parvis de La Défense
Socle de la Grande Arche
Paris La Défense cedex, 92044

HOME PAGE: http://www.ieseg.fr/en/faculty-and-research/professor/?id=1740

LEM - CNRS 9221 ( email )


HOME PAGE: http://lem.cnrs.fr/

Paweł Pisany

Polish Academy of Science ( email )

3 Maja str. 2 m 164
Warsaw, 00-391

Emil Slazak

Warsaw School of Economics (SGH) ( email )

aleja Niepodleglosci 162
PL-Warsaw, 02-554

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