"How Digital Lending Shapes Bank Risk and Competition: Evidence from an Emerging Economy", with Enrique Bátiz-Zuk, Anuar Bechara, Fabrizio López-Gallo, IMF Working Paper, No 2026/198, Sept 2026. 

Abstract

This paper examines the effect of alternative digital lending—defined as digital credit provision by non‑bank financial intermediaries (NBFIs)—on bank and systemic risk taking and competition. The paper focuses on Sociedades Financieras Populares (SOFIPOs) which constitute a regulated and well‑documented NBFI segment allowing an empirical assessment of the relationship between digital non-bank lending expansion and bank outcomes. Using a quarterly sample of 53 Mexican banks and 8 of these non-banks for the period 2018Q1–2024Q4, we document that growth in alternative digital lending is associated with lower individual bank risk-taking and stronger competitive pressures, with the latter effect being stronger for small banks. Reflecting the moderate size of digital lenders in Mexico and the compositional reallocation between bank and non‑bank credit, overall systemic risk appears broadly unaltered by the entry of the new players.

Keywords: alternative lending, bank risk‑taking, competition, Digital finance, financial inclusion, Mexico, non-bank financial intermediaries, systemic risk

April 2026 Global Financial Stability Report 

Chapter 2: "Capital Flows to Emerging Markets: The Role of Global Nonbank Investors” [Link]

Box 2.1. "Private Credit in Emerging Markets" 

with Dmitry Yakovlev 

Chapter 1: "Global Financial Markets Confront the War in the Middle East and Amplification Risks" [Link]

Box 1.3. "Data Centers Become a Large Part of Global Commercial Real Estate and Require Financing"

with Zixuan Huang, Timothy Chu, and Sheheryar Malik

Talented Young Italians in the UK (TYI-UK) Award 2021

I received national recognition for professional excellence among Italians under 40 for my contributions to the 'Finance' category by the Italian Embassy in the UK and the Italian Chamber of Commerce.

Related posts [Acceptance speech] [Interview for ItaliaNews24]