Singapore Central Bank chief urges FinTech caution
Monetary Authority of Singapore MD Ravi Menon has warned investors to be wary of peer-to-peer lending platforms and cryptocurrencies such as Bitcoin, according to Bloomberg.
"I do see some collapse of the bubble in the FinTech space. Some business models, some applications of technology are clearly overstretched," Ravi was quoted as saying in the report.
Ravi compared the current FinTech development with the dot-com bubble at the turn of the century. "At some point in the current euphoria about FinTech, there will be some reckoning of that sort," he said. "But I do hope that it does not sweep away everything as it did in 2001, sweep away the good as well as the hype."
He warned that P2P lending platforms, while allowing people with limited access to loans from traditional financiers to borrow from alternative sources, could be used to defraud investors and added that big data and social media access to customer data could become problematic.