FinTech credit: Market structure, business models and financial stability implications

The report considers the implications for financial stability should FinTech credit grow to account for a significant share of overall credit. Potential benefits include access to alternative funding sources for borrowers, a lower concentration of credit in the traditional banking system and pressure on incumbent banks to be more efficient in their credit provision. At the same time, systemic risk concerns may arise, such as weaker lending standards and more procyclical credit provision in the economy. FinTech credit also poses challenges to the regulatory perimeter and authorities' monitoring of credit activity.