Singapore University of Social Sciences

The FinTech Promise

June 23, 2016

Serving the unbanked or underbanked at the bottom and middle of the economic pyramid is now not only technologically feasible but also economically viable and critical through FinTech.

David LEE Kuo Chuen, “The FinTech Promise”

After the 2008 financial crisis, global economy has been sluggish and growth has not returned to the pre-crisis level. Policy response has been to restore stability rather than to reform. By increasing market liquidity via successive quantitative easing, the intention was to increase bank lending to productive enterprises, followed by an increase in output, income and employment. Instead, excessive liquidity has encouraged speculative activities, leading to bubbles in tradable asset classes, and distorting the allocation of resources. The results were low productivity growth and greater income inequality, with increased wealth at the top of the wealth pyramid and lower income at the bottom half. A larger proportion of the population is worse off with lower overall consumption for the economy.

The full article can be accessed [here].

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