Fintech Could Close the Economic Civil Rights Gap
They’re banking on its success. In the wake of the 2008 debt crisis, new financial technologies (aka fintech) are stepping in to fill the small loans gap left by a bruised and wary banking sector. By going beyond the traditional yardstick of credit scores and delving into big data, fintech could potentially sidestep issues of discrimination against minority-owned and very small firms, which saw just 29 percent of loan applications fully approved in 2015. Yet without adequate regulatory oversight in place, some worry about the potential for predatory lending.