On Fintech and Financial Inclusion
Thomas Philippon ()
No 26330, NBER Working Papers from National Bureau of Economic Research, Inc
The cost of financial intermediation has declined in recent years thanks to technological progress and increased competition. I document this fact and I analyze two features of new financial technologies that have stirred controversy: returns to scale, and the use of big data and machine learning. I argue that the nature of fixed versus variable costs in robo-advising is likely to democratize access to financial services. Big data is likely to reduce the impact of negative prejudice in the credit market but it could reduce the effectiveness of existing policies aimed at protecting minorities.
JEL-codes: G11 G2 G5 L1 N2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-big, nep-fle and nep-pay
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