FinTech - Shaping the Financial World mit course finance technology fintech

Class 7 - Credit and Lending

• China's Digital Currency Electronic Payment (digital yuan, e-CNY) was launched in 2020
  • As of 2023 government employees are paid in e-CNY
  • Struggling to compete against Alipay, WeChat Pay, etc.
  • Concerns around privacy

Readings

Required

• Apple Card: 12 Fintech Companies Driving Credit Card Innovation Jeremy Brown, Crunchbase (March 26, 2019)
• Need a loan? There’s a tech company for that Jason Abbruzzese, NBC (November 11, 2019)
• Get to Know Your Marketplace Lenders American Banker (accessed March 25, 2020)
• Alternative Data Across the Loan Life Cycle: How FinTech and Other Lenders Use It and Why (PDF - 2.3MB) Experian (December 4, 2018)

Optional

• Tech lenders push for a piece of the coronavirus, small-business bailout Kate Rooney, CNBC  (March 23, 2020)
• US lending at point of sale: The next frontier of growth Puneet Dikshit, Diana Goldshtein, and Udai Kaura, McKinsey & Company (November 4, 2019)
• Detroit-based mortgage giant Quicken Loans on pace to set home loan record JC Reindl, Detroit Free Press (December 11, 2019)
• Peer-to-Peer Lending 101 Jeff Rose, Good Financial Cents (November 20, 2019)

Study Questions / Issues to Prepare

1. How have Big Tech firms positioned themselves to offer credit and lending products to consumers and businesses?
2. What is marketplace or peer-to-peer lending? What is point of sale lending? How might they change the provision of consumer credit and its competitive landscape?
3. How is so-called “Alternative Data” and machine learning changing the world of credit ratings and underwriting?