FinTech and household finance: a review of the empirical literature
China Finance Review International
ISSN: 2044-1398
Article publication date: 19 May 2020
Issue publication date: 22 September 2020
Abstract
Purpose
This paper reviews recent advances in the empirical literature of FinTech and household finance.
Design/methodology/approach
We survey the effects of FinTech on three different aspects of household finance: payments, lending and portfolio decisions. Specifically, we examine the impact of digital payments, mobile money, FinTech lending, marketplace lending, robo-advising and crowd-funding.
Findings
Studies suggest that FinTech has positively benefited households by increasing consumption and borrowing. This allows them to smoothen their consumption across time. Furthermore, there is an improvement in their portfolio diversification. Nonetheless, there is also evidence that certain households overconsume and borrow beyond their means.
Originality/value
Despite the importance of this topic, there has been a lack of empirical evidence until recently. In this paper, we take stock of the empirical evidence in the literature through the lens of household finance
Keywords
Acknowledgements
We thank Kylie Lim and Enqi Teo for outstanding research assistance.
Citation
Agarwal, S. and Chua, Y.H. (2020), "FinTech and household finance: a review of the empirical literature", China Finance Review International, Vol. 10 No. 4, pp. 361-376. https://doi.org/10.1108/CFRI-03-2020-0024
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited