Web: Fintech Lending Booms. Is That a Good Thing?

September 2018 by: From The Web

Fintech lending has grown fastest in countries with higher income, less competitive banking sectors, and loose financial regulation, the Bank of International Settlements has found in a new report.

But the biggest findings in the report are what the BIS, the bank for central banks, doesn’t know: How fintech has affected borrowers, lenders, financial stability, and the economy.

The rise of fintech lending is clear: The volume of loans globally vaulted to $284 billion in 2016 from $11 billion in 2013.

Growth in what was arguably the world’s frothiest and most dangerous fintech lending market, China, has slowed recently as a result of a government crackdown. That government action, however, didn’t come until the perils of extremely risky peer-to-peer lending products being marketed as deposit-like securities became clear.

Retail investors have lost tens of billions of dollars in recent years, sparking anger and attempts at public protest.


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