What determines cross-country differences in fintech and bigtech credit markets?

Oskar Kowalewski (o.kowalewski@ieseg.fr), Pawel Pisany (ppisany@inepan.pl) and Emil Slazak (eslaza@sgh.waw.pl)
Additional contact information
Pawel Pisany: Institute of Economics, Polish Academy of Sciences, Warsaw, Poland
Emil Slazak: Warsaw School of Economics, Warsaw, Poland

No 2021-ACF-02, Working Papers from IESEG School of Management

Abstract: This study is an investigation of the determinants of the development of technology-driven alternative credit markets, that is, fintech and bigtech credit. Using a data sample from 94 countries from 2013–2019, we confirmed the relevance of the availability of credit data, both the traditional and alternative types, with the latter being known as the so-called “digital footprint.” Furthermore, we have provided evidence to confirm the positive role of strengthening Internet privacy protections in fostering the development of the fintech credit market, which may not necessarily be the case for the bigtech credit market. We have also shown that the growth of the fintech and bigtech credit market is preceded by a rising paytech services market. Furthermore, we have found that the development of fintech credit services is fostered by the strength of both principal institutions, like the rule of law, and credit-specific institutions, especially in terms of insolvency framework effectiveness, while, for the bigtech credit market, only the latter matters. Interestingly, we have also found that various national cultural profiles can boost the development of fintech and bigtech credit services. Lastly, we have shown that the fintech credit market develops faster in countries characterized by high levels of societal distrust toward banks and that the opposite seems to be the case with the bigtech credit market.

Keywords: alternative credit; fintech; bigtech; innovation; culture; trust; data access (search for similar items in EconPapers)
JEL-codes: G21 G23 L26 O30 (search for similar items in EconPapers)
Pages: 42
Date: 2021-04
New Economics Papers: this item is included in nep-cwa, nep-fdg and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.ieseg.fr/wp-content/uploads/2021/04/2021-ACF-02.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ies:wpaper:f202102

Access Statistics for this paper

More papers in Working Papers from IESEG School of Management Contact information at EDIRC.
Bibliographic data for series maintained by Lies BOUTEN (l.bouten@ieseg.fr).