FinTech Lending and Cashless Payments
Event details
| Date | 05.05.2023 |
| Hour | 10:30 › 12:00 |
| Speaker | Boris Vallee - Harvard Business School |
| Location |
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.
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Practical information
- Informed public
- Free