Small debts, big problems ( 消费,借贷 : 一条龙 )


Small debts, big problems  <source:>

“Because it doesn’t need to meet strict financial requirements, online microlending has evolved into more like a Ponzi scheme,” Shen Yan, an economics professor at Peking University’s National School of Development, tells Rest of World. “For some companies, the ‘better clients’ in their eyes are those who can’t stop borrowing money.”

“Most people don’t bother to calculate the interest. They just see the advertisement and think, ‘Oh it doesn’t cost much.’”

The story behind Ant's ( and others FinTech )  high growth micro-lending business.....

Although this is still not happening in SG , but I think is better to know and understand the "pitfalls " behind these so called "micro-lending / micro-credit "...

The Dark Side of Fintech Borrowing < source : Harvard Business>

Fintechs have revolutionized the banking industry, but some customers end up worse for the experience.....

Stay Safe and Stay Out Of Debt !!



  1. It reminded me of US Sub-prime leading to GFC 2008/2009

    1. Yes , indeed, most of the Fintech also "repackage " and "securitize " these loan to get more money from financial institution... it could possible lead to "sup-prime " kind of (systemic risk) crisis if is uncontrolled and became bigger and bigger.
      Cheers !

    2. Already happening for past 10 years already.

      These slice & dice repackaged instruments are known as collateralized loan obligations (CLO) .... as opposed to CDO of subprime era.

      But both are basically similar.

      And there're ETFs for it, lol. Ticker symbols AAA and JAAA ... yeah they focus on the higher triple-A tranches of CLOs. 🤣

    3. Hi Spur,
      Thanks for the comments and additional info... same like sub-prime , triple A tranches will become triple A "trash " when crisis hit.. :C
      Cheers !


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