Bank Competition and Household Privacy in a Digital Payment Monopoly

Bank Competition and Household Privacy in a Digital Payment Monopoly
Author: Mr. Itai Agur
Publisher: International Monetary Fund
Total Pages: 55
Release: 2023-06-09
Genre: Business & Economics
ISBN:


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Lenders can exploit households' payment data to infer their creditworthiness. When households value privacy, they then face a tradeoff between protecting such privacy and credit conditions. We study how the introduction of an informationally more intrusive digital payment vehicle affects households' cash use, credit access, and welfare. A tech monopolist controls the intrusiveness of the new payment method and manipulates information asymmetries among households and oligopolistic banks to extract data contracts that are more lucrative than lending on its own. The laissez-faire equilibrium entails a digital payment vehicle that is more intrusive than socially optimal, providing a rationale for regulation.


Bank Competition and Household Privacy in a Digital Payment Monopoly
Language: en
Pages: 55
Authors: Mr. Itai Agur
Categories: Business & Economics
Type: BOOK - Published: 2023-06-09 - Publisher: International Monetary Fund

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Lenders can exploit households' payment data to infer their creditworthiness. When households value privacy, they then face a tradeoff between protecting such p
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Type: BOOK - Published: 2024-08-30 - Publisher: International Monetary Fund

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This note offers a framework to help countries navigate, as well as tools to help them manage, the trade-offs between CBDC data use and privacy protection. It a
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Authors: MissEstelle X Liu
Categories: Business & Economics
Type: BOOK - Published: 2021-02-19 - Publisher: International Monetary Fund

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The latest advancement in financial technology has posed unprecedented challenges for incumbent banks. This paper analyzes the implications of these challenges
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Type: BOOK - Published: 2021-02-22 - Publisher:

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FinTech in Sub-Saharan African Countries
Language: en
Pages: 61
Authors: Mr.Amadou N Sy
Categories: Business & Economics
Type: BOOK - Published: 2019-02-14 - Publisher: International Monetary Fund

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FinTech is a major force shaping the structure of the financial industry in sub-Saharan Africa. New technologies are being developed and implemented in sub-Saha