Fintech Industry Must Transform to Help Underserved Communities

Alternative credit options can mean the difference between financial well-being and financial hardship for many borrowers. Fintech advancements such as buy-now-pay-later, plus the combination of credit models driven by artificial intelligence and machine learning, may pave the way for a fairer and more inclusive future of credit. But lessons from the financial crisis ring clear: When only one part of the market is required to comply with regulations, the other will compete by offering disadvantageous and risky products. Regulators are now faced with how to advance a regulatory framework that encourages innovation while protecting consumers. Buy now/pay later options spurred marked industry growth, as well as artificial intelligence and machine learning advances during the pandemic, with implications and improved assistance for underserved communities.