Last Week in Lending: Tuesday, 27 August 2024

I’ve come across some insightful reads over the past month, and wanted to share a few highlights with you...??

1. From promising to productive: Real results from gen AI in services by 麦肯锡

McKinsey digs into how companies are moving from just talking about AI to actually making it work in the real world. The report highlights some real-world examples of AI boosting productivity and points out what’s needed to make it happen, like strong leadership and smart investments. If you're curious about how AI is really impacting businesses, this is a solid read.

2. International Monetary Fund World Economic Outlook Update, July 2024

The IMF’s July update gives a mixed picture of the global economy—some parts of the world are bouncing back well, while others continue to struggle with inflation. The key takeaway from the IMF is that governments need to get smart with their fiscal policies and work together to keep things on track. It’s an insightful overview of where things stand globally, and a reminder of how important proactive risk management strategies remain in 2024.

3. Fintech and financial stability: Evidence from spatial analysis for 25 countries

This study looks at the impact of fintech across 25 different countries - suggesting that recent advances in fintech have positively impacted financial stability from 2013 to 2020, with notable cross-border effects, especially in countries with smaller Fintech volumes and those geographically closer.

4. The Federal Reserve on Private Credit Growth and Monetary Policy Transmission

The Fed’s analysis dives into how private credit growth impacts the effectiveness of monetary policy. The main takeaway is that rapid credit growth can either help or hurt policy outcomes, depending on the economic situation. For anyone interested in how credit dynamics play into broader economic policies, this is worth a look.

5. World Bank Country Classifications by Income Level for 2024-2025

The World Bank just updated its country income classifications, which are important for figuring out where international aid and investment should go. This update reflects changes in economic growth and inflation across different countries - insights that are useful for those working with risk products.

6. The Federal Reserve on Small-Dollar Loans in the U.S.: Evidence from Credit Bureau Data

This report from the Fed gives us a closer look at how small-dollar loans are being used in the US, especially among lower-income households. The findings highlight some of the challenges these borrowers face and suggest that better regulation could help protect them while still ensuring they have access to credit. It's a must-read if you're interested in consumer finance.