Class 7: Credit & Lending

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Lecture Slides

Class 7 Lecture Slides: Credit and Lending (PDF - 1.4MB)

Readings

Required Readings

'Apple Card: 12 Fintech Companies Driving Credit Card Innovation' Jeremy Brown, Crunchbase (March 26, 2019)

'Need a loan? There's a tech company for that' Jason Abbruzzese, NBC (November 11, 2019)

'Get to Know Your Marketplace Lenders' American Banker (accessed March 25, 2020)

This resource may not render correctly in a screen reader.'Alternative Data Across the Loan Life Cycle: How FinTech and Other Lenders Use It and Why (PDF - 2.3MB)' Experian (December 4, 2018)

Optional Readings

'Tech lenders push for a piece of the coronavirus, small-business bailout' Kate Rooney, CNBC  (March 23, 2020)

'US lending at point of sale: The next frontier of growth' Puneet Dikshit, Diana Goldshtein, and Udai Kaura, McKinsey & Company (November 4, 2019)

'Detroit-based mortgage giant Quicken Loans on pace to set home loan record' JC Reindl, Detroit Free Press (December 11, 2019)

'Peer-to-Peer Lending 101' Jeff Rose, Good Financial Cents (November 20, 2019)

Study Questions / Issues to Prepare

  1. How have Big Tech firms positioned themselves to offer credit and lending products to consumers and businesses?
  2. What is marketplace or peer-to-peer lending? What is point of sale lending? How might they change the provision of consumer credit and its competitive landscape?
  3. How is so-called "Alternative Data" and machine learning changing the world of credit ratings and underwriting?