Fintech credit, big tech credit and income inequality

Martin Hodula

Finance Research Letters, 2023, vol. 51, issue C

Abstract: The rise of alternative credit lines, powered by the digital revolution, comes with a promise of additional funding to the economy. In the paper, I explore whether the growth of fintech and big tech credit can be associated with changes in income inequality. For this purpose, I utilize a rich panel of 78 countries over the 2013–2019 period. I find that rise of fintech and big tech credit is indeed associated with a reduction in income inequality. However, this somewhat wanting result emerges only in countries with an already high level of financial inclusion.

Keywords: Digital lending; Fintech; Big tech; Inclusion; Income inequality (search for similar items in EconPapers)
JEL-codes: D31 D63 E51 G23 O31 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:51:y:2023:i:c:s1544612322005645

DOI: 10.1016/j.frl.2022.103387

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