IDEAS home Printed from https://ideas.repec.org/a/mof/journl/ppr16_04_05.html
   My bibliography  Save this article

An Overview of Online Alternative Finance

Author

Listed:
  • Masahiro Fukuhara

    (Institution for a Global Society Corporation CEO/Founder Keio University Project Professor)

Abstract

Online alternative finance is rapidly growing worldwide while driving financial inclusion thanks to the growing body of data made available by the expansion of cyberspace and the advancement of machine learning and other technology. The epicenter of the growth is China, but online alternative finance is also continuing to grow in developed countries, such as the United States and the United Kingdom, through the creation of new market segments and a shift from some existing financial institutions. The sort of information used for loan screening in the case of online alternative finance is different from that used in the case of finance provided by existing financial institutions. There are even cases where credit history information is not used. Even when credit history information is used, the range of additional data used for loan screening is expanding to include information related to electronic commerce (EC) sites, in the case of corporate borrowers, and detailed information on personality and academic achievement and the history of residential moving, in the case of individual borrowers. This paper provides an overview of the current state of online alternative finance, conducts an empirical and analytical survey on screening methods, and looks at specific cases of online alternative finance.

Suggested Citation

  • Masahiro Fukuhara, 2020. "An Overview of Online Alternative Finance," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 16(4), pages 1-19, August.
    • Handle: RePEc:mof:journl:ppr16_04_05
    as

    Download full text from publisher

    File URL: http://www.mof.go.jp/english/pri/publication/pp_review/ppr16_04_05.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    fintech; online finance; big data; AI; loan screening; financial inclusion;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mof:journl:ppr16_04_05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Policy Research Institute (email available below). General contact details of provider: https://edirc.repec.org/data/prigvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.