On 22 May 2017, the Committee on the Global Financial System (CGFS) and the Financial Stability Board (FSB) released a report titled ‘FinTech credit’. FinTech credit is credit activity facilitated by electronic platforms, such as marketplace lenders. This usually involves borrowers being matched directly with investors, although some platforms use their own balance sheet to lend.
The report examines FinTech credit markets and how they will affect the nature of credit provision and the traditional banking sector. The report is also aimed at assisting policymakers understand current FinTech credit markets, and the associated challenges in monitoring and regulating such activity. It also assesses the potential microfinancial benefits and risks of these activities, and considers the possible implications for financial stability in the event that FinTech credit should grow to account for a significant share of overall credit.