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Big Tech and Fintech credit

Dates:
  • Thu 28 Jan 2021 13.00 - 14.00
  Add to Calendar 2021-01-28 13:00 2021-01-28 14:00 Europe/Paris Big Tech and Fintech credit

Most recent reports show growing volumes of alternative credit: fintech credit provided by non-bank digital platforms, and big tech credit provided by large technology companies, independently or in partnership with traditional financial institutions. According to a report by the Bank for International Settlements (BIS), the ‘total alternative credit’ reached USD 795 billion globally in 20191.The expansion of alternative credit has been further accelerated by the Covid-19 pandemic, with more people using financial services and shopping online. As the drastic growth of fintech and big tech credit continues in Asia, Africa and Latin America, should European policy-makers facilitate this innovation-driven change?

The growth of alternative credit is primarily demand-driven, including lower costs compared to traditional banking, ease of use, speed and convenience of fintech and big tech credit. Supply-side factors, in turn, are linked with the stringency of banking regulation, which can create barriers for fintech and big tech credit, but also ease of doing business, and the degree of development of bond and equity markets. Despite the promise of consumer benefits, rapid growth of credit bears the risk of over-indebtedness for individual borrowers and may present risks for financial stability.

The seminar will focus on the risks and benefits of fintech and big tech credit from the European perspective.

The following questions will be addressed:

  • Is alternative credit an opportunity or a concern for the European financial sector?
  • – Consumer perspective (e.g. choice, consumer protection, privacy)
  • – Business perspective (e.g. competition, financial stability)
  • Does the regulatory framework that regulates alternative credit:
  • – set barriers for the growth of alternative credit (innovation in finance more broadly)?
  • – overlook any risks (to consumer protection, financial stability, competitive process)?

Online event - DD/MM/YYYY
  Online event -

Most recent reports show growing volumes of alternative credit: fintech credit provided by non-bank digital platforms, and big tech credit provided by large technology companies, independently or in partnership with traditional financial institutions. According to a report by the Bank for International Settlements (BIS), the ‘total alternative credit’ reached USD 795 billion globally in 20191.The expansion of alternative credit has been further accelerated by the Covid-19 pandemic, with more people using financial services and shopping online. As the drastic growth of fintech and big tech credit continues in Asia, Africa and Latin America, should European policy-makers facilitate this innovation-driven change?

The growth of alternative credit is primarily demand-driven, including lower costs compared to traditional banking, ease of use, speed and convenience of fintech and big tech credit. Supply-side factors, in turn, are linked with the stringency of banking regulation, which can create barriers for fintech and big tech credit, but also ease of doing business, and the degree of development of bond and equity markets. Despite the promise of consumer benefits, rapid growth of credit bears the risk of over-indebtedness for individual borrowers and may present risks for financial stability.

The seminar will focus on the risks and benefits of fintech and big tech credit from the European perspective.

The following questions will be addressed:

  • Is alternative credit an opportunity or a concern for the European financial sector?
  • – Consumer perspective (e.g. choice, consumer protection, privacy)
  • – Business perspective (e.g. competition, financial stability)
  • Does the regulatory framework that regulates alternative credit:
  • – set barriers for the growth of alternative credit (innovation in finance more broadly)?
  • – overlook any risks (to consumer protection, financial stability, competitive process)?


Location:
Online event -

Affiliation:
Robert Schuman Centre for Advanced Studies

Type:
Online Debate

Links:
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Page last updated on 18 August 2017