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Digital Credit and Its Determinants: A Global Perspective

Author

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  • Tu D. Q. Le

    (Faculty of Finance & Banking, University of Economics and Law, Ho Chi Minh City 700000, Vietnam
    Vietnam National University, Ho Chi Minh City 700000, Vietnam
    International Centre for Economic Analysis (ICEA), Waterloo, ON N2L 3C5, Canada)

  • Thanh Ngo

    (School of Aviation, Massey University, Palmerston North 4442, New Zealand
    University of Economics and Business, Vietnam National University, Hanoi 100000, Vietnam)

  • Dat T. Nguyen

    (Faculty of Finance & Banking, University of Economics and Law, Ho Chi Minh City 700000, Vietnam
    Vietnam National University, Ho Chi Minh City 700000, Vietnam)

Abstract

Digital credit has gained much attention from academic researchers, practitioners, and policymakers worldwide. This study empirically evaluates the determinants of digital credit using cross-country data from 2013 to 2019. The conventional ordinary least square regression with fixed effects estimator is used to investigate the factors affecting the growth of digital credit. Our study highlights that the regulatory frameworks of anti-money laundering and terrorist financing, the economy’s innovative capacity, and financial development are significant factors affecting the development of digital credit, especially fintech credit. However, the findings indicate that only the innovation capacity is more critical to the expansion of bigtech credit. Nonetheless, our results provide some important implications for market participants and the authorities in promoting digital credit. Accordingly, this study contributes to the literature on the growth of digital credit when considering the critical roles of money laundering and terrorist financing frameworks and innovation capacity.

Suggested Citation

  • Tu D. Q. Le & Thanh Ngo & Dat T. Nguyen, 2023. "Digital Credit and Its Determinants: A Global Perspective," IJFS, MDPI, vol. 11(4), pages 1-12, October.
    • Handle: RePEc:gam:jijfss:v:11:y:2023:i:4:p:124-:d:1267303
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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