FinTech Lending and Cashless Payments


Event details

Date 05.05.2023
Hour 10:3012:00
Speaker Boris Vallee - Harvard Business School
UniL Campus, Room Extra 126
Category Conferences - Seminars
Event Language English

We uncover an informational synergy between FinTech lending and cashless payments. Theoretically, FinTech lenders screen borrowers more efficiently when borrowers use cashless payments that produce transferable and verifiable information. In turn, a strategic consideration to stand out from non-adopting borrowers pushes borrowers to adopt cashless payments. Empirically, a larger use of cashless payments predicts a higher likelihood of loan approval, a lower interest rate, and a higher loan amount, especially for firms of higher credit quality. This synergy provides an economic rationale for open banking, and more broadly for data sharing and a lending model without traditional banking relationships.