The FSB released a highly interesting paper on the impact of Fintech on credit intermediation.
“This report provides several key messages. The nature of FinTech credit activity varies significantly across and within countries due to heterogeneity in the business models of FinTech credit platforms. Although FinTech credit markets have expanded at a fast pace over recent years, they currently remain small in size relative to credit extended by traditional intermediaries. A bigger share of FinTech-facilitated credit in the financial system could have both financial stability benefits and risks in the future, including access to alternative funding sources in the economy and efficiency pressures on incumbent banks, but also the potential for weaker lending standards and more procyclical credit provision in the economy.”
Though the conclusions are, for the most part, not particularly surprising, the paper does an excellent job summarizing some of the challenges, and the need for sound data.