Discussion paper Finance and Fintech

DP16668 FinTech Lending

In this paper, we review the growing literature on FinTech lending –- the provision of credit facilitated by technology that improves the customer-lender interaction or lenders’ screening and monitoring of borrowers. FinTech lending has grown rapidly, though in developed economies like the U.S. it still only accounts for a small share of total credit. An increase in convenience and speed appears to have been more central to FinTech lending’s growth than improved screening or monitoring, though there is certainly potential for the latter, as is the case for increased financial inclusion. The COVID-19 pandemic has shown potential vulnerabilities of FinTech lenders, although in certain segments they have displayed rapid growth.


Berg, T and M Puri (2021), ‘DP16668 FinTech Lending‘, CEPR Discussion Paper No. 16668. CEPR Press, Paris & London. https://cepr.org/publications/dp16668