Open Access Journal Article

Determinants of FinTech and BigTech lending: the role of financial inclusion and financial development

by Peterson K. Ozili a,* orcid
Central Bank of Nigeria, Abuja, Nigeria
Author to whom correspondence should be addressed.
JEA  2023, 33; 2(3), 33;
Received: 6 April 2023 / Accepted: 8 May 2023 / Published Online: 12 May 2023


Credit markets around the world are undergoing digital transformation which has led to the rise in FinTech and BigTech lending. FinTech and BigTech lending is the provision of credit by FinTech and BigTech providers who have more capital, cutting-edge IT systems, worldwide recognition, greater online presence and are able to handle more big data on computers and mobile phones than traditional banks. FinTech and BigTech lending is growing in importance, but the determinants of FinTech and BigTech lending have received little attention in the literature. This study investigates the determinants of FinTech and BigTech lending. The study focused on the effect of financial inclusion and financial development on FinTech and BigTech lending. Using data for 18 countries from 2013 to 2019 and employing the difference-GMM and 2SLS regression methods, the findings reveal that financial inclusion and financial development are significant determinants of FinTech and BigTech lending. Financial development is a positive determinant of FinTech and BigTech lending while financial inclusion has a significant effect on FinTech and BigTech lending. Also, FinTech and BigTech lending lead to greater banking sector stability and also poses the risk of rising nonperforming loans. There is also a significant positive correlation between financial development and FinTech and BigTech lending. These findings add to the emerging literature on the role of FinTech and BigTech in financial intermediation. This research is significant because it provides insights into the role of financial inclusion and financial development in the digital transformation of credit markets.

Copyright: © 2023 by K. Ozili. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
K. Ozili, P. Determinants of FinTech and BigTech lending: the role of financial inclusion and financial development. Journal of Economic Analysis, 2023, 2, 33.
AMA Style
K. Ozili P. Determinants of FinTech and BigTech lending: the role of financial inclusion and financial development. Journal of Economic Analysis; 2023, 2(3):33.
Chicago/Turabian Style
K. Ozili, Peterson 2023. "Determinants of FinTech and BigTech lending: the role of financial inclusion and financial development" Journal of Economic Analysis 2, no.3:33.
APA style
K. Ozili, P. (2023). Determinants of FinTech and BigTech lending: the role of financial inclusion and financial development. Journal of Economic Analysis, 2(3), 33.

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