Risk and Reward - Q4 2017

Research and investment strategies  

Dec 4, 2017 | Invesco

The rise of digital lending

One of the most interesting and potentially impactful developments accompanying the advent of financial technology - “fintech” - has been the appearance and rapid growth of digital lending and other alternative finance platforms.

While many of these platforms are still in their infancy, we are convinced that fundamental changes are on the way, and investors should be prepared. As always, the details are important: business models are not all created equal, the regulatory environment is shifting and client demands are constantly evolving.

This edition of Risk & Reward explores these developments and their implications for markets and investors. Our equity and private capital teams have partnered with outside experts, practitioners and academics to gain insight into the opportunities and challenges in the digital lending space, as well as what may lie ahead.

In addition to our qualitative research on alterative finance, this issue also features Invesco’s quantitative expertise with the latest report on our factor investing research. This time, we analyze whether less may be more when it comes to the number of factors used for portfolio analysis – deploying Invesco Quantitative Strategies’ extensive database to explore the trade-offs between more detail and less cost.

 

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