Category Archives: Marketplace Lending

Can Technology Undermine Macroprudential Regulation: Evidence from Marketplace Lending in China

By | September 10, 2019

Courtesy of Alberto Manconi, Fabio Braggion, and Haikun Zhu The Global Financial Crisis led economists and regulators to refocus on the relationship between household leverage and macroeconomic performance. The ensuing debate has revolved around how best to contain household debt using a variety of approaches, with much emphasis being placed on loan-to-value (LTV) caps, i.e.… Read More »

Fintech Lending Risks and Benefits

By | November 14, 2018

Courtesy of Vincent Di Lorenzo Fintech lending, sometimes referred to as online marketplace lending, is lending through digital platforms that often collect and base lending decisions on nontraditional data sources. Underwriting is typically automated and may employ nontraditional credit algorithms. In the consumer and small business credit market, fintech loan originations have experienced an annual… Read More »

Financing Private Investment in China: The Role of Alternative Finance and Banking Reforms

By | September 28, 2018

Courtesy of Noëmie Lisack Small, young private firms in China have long been struggling to obtain formal bank loans. To bypass financial constraints, these firms have resorted to alternative, less formal financing sources. In this context, Chinese authorities are aiming to develop a more formal, market-based, and better regulated credit sector. In a Staff Working… Read More »

Behavioral Biases in Peer-to-Peer (P2P) Lending

By | August 13, 2018

Courtesy of Shahar Ayal, Daphna Bar-Haim and Moran Ofir Peer-to-Peer (P2P) lending refers to online marketplaces where lenders lend to individuals or small businesses. This rapidly expanding new source of credit eliminates the traditional financial intermediary and reduces financial exclusion by allowing more people to borrow and lend. At the same time, the replacement of… Read More »

What Happens When FinTech Firms Don’t Understand Regulation?

By | June 27, 2018

This post is the third in a series that highlights various elements of a new online course titled “FinTech Law and Policy.” The course is available to all on the Coursera platform (it can be audited for free) and covers the key legal and regulatory issues confronting the FinTech industry today. The following examples highlight… Read More »

Comptroller’s Remarks Indicate the Fintech Charter Could Lead to Mixing of Banking and Commerce

By | October 2, 2017

Drowned out by yet another busy news cycle last week were Acting Comptroller of the Currency Keith Noreika’s remarks at a fintech conference held at the Federal Reserve Bank of Philadelphia. However, these comments should not be overlooked, as they have the potential to upend the banking industry in this country by tearing down the… Read More »