Fintech highlights the good, bad and ugly of lending

The controversy about some Chinese online small consumer credit providers allegedly overcharging their clients should not invite a blanket ban. Instead, it calls for a swift and smart regulatory response that, while allowing more entrepreneurial efforts to tap into the huge potential of fintech in the age of the internet, soundly protects consumers from predatory loans in whatever guise.

The successful initial public offering on Nasdaq by the domestic online lender Qudian, the largest in the United States by a Chinese company this year, and the ensuing nosedive from the share's 48-percent jump on their trading debut to below the IPO price in just a few days highlighted both investor enthusiasm about the promise of fintech startups in the world's second-largest economy and their concerns about tighter regulations over irresponsible online lending.

Reported strong profitability and business growth as well as a growing young user population are good reasons for investors to show confidence in online consumer credit providers.