In nature, credit is a complicated philosophy, which means that regulators pursue more spaces to balance benefits and risks. This is why we can see in EM that, when conventional loans are dominated by regulated banks, people can quietly raise funds from friends of friends to speculate in the housing market.
Regulators have relied on the short nature life of the loan to passively control scales of credit in system. This method seems to have been smart (except in sub-prime crisis of 2008) until they found the improvement in technology allows firms such as Ant Group to access their loan's consumers 100 times faster than traditional banks.
Any way, it is still regulators' issue. For us, Ant Group is seen as a perfect example of how economy segmentation is being changed dramatically when consumption goes through intangible technologies. Facing lack of datasets for training, we said we have to focus on demand side such as consumers' goods. Now we need to figure out how to deal with changes in the segment serving financial products.
We want to invite you to join us to finish this unprecedented job.