The role of financial technology (fintech) in future financial services markets has generated controversy. Many believe fintech could expand the credit box, while others think it will provide credit to borrowers who can obtain credit most easily. Our two speakers have recently authored papers addressing this issue. Tomasz Piskorski shows that relative to non-fintech shadow banks, fintech mortgage lenders are more likely to serve more creditworthy borrowers, are more active in the refinancing market, and tend to charge a convenience premium. Todd Baker shows that fintech is a promising alternative to the short-term, small-dollar credit system serving low-income working families. He is excited by the prospect of digital income and expense variability management solutions.
Todd Baker, Senior Fellow, Mossavar-Rahmani Center for Business and Government, Harvard Kennedy School; Managing Principal, Broadmoor Consulting LLC
Tomasz Piskorski, Edward S. Gordon Associate Professor of Real Estate, Columbia Business School; Research Associate, National Bureau of Economic Research
Laurie Goodman, codirector, Housing Finance Policy Center, Urban Institute (moderator)