NEW YORK—On November 21, 2023, the Federal Reserve Bank of New York will release a brief, “The Role of Fintech in Unsecured Consumer Lending to Low- and Moderate-Income Individuals,” that discusses an expansion of this type of lending.
The authors analyzed 2017 through 2023 data on unsecured personal loan balances, loan originations, and balances by lender type; fintech loan originations to borrowers of different credit score tiers; loan use by income tier; and delinquencies.
The authors also include insights from their outreach to fintech lenders about their lending models and underwriting approaches, and to academic researchers about the impact of fintech-originated unsecured personal credit products on low- and moderate-income borrowers.
The brief was developed as part of the New York Fed's Community Development efforts, which have three areas of focus: health, household financial well-being, and climate risk.
