In the United States, for example, 36% of unsecured personal lending was issued by fintechs in 2017.5 “Fintech” is often associated with small start-ups – technologically innovative firms with agile business models. But huge, globally active technology companies, the so-called big tech companies, are also entering the market.
Small open economies can be overwhelmed by large and volatile capital flows and they can be stifled when markets freeze up. New Zealand has fared better than most over the last thirty years and the Reserve Bank’s independence and price and financial stability objectives have been a key contributor to that. We believe our risks are manageable, should a downturn occur.