How FinTech Enters China’s Credit Market

By Harald Hau, Yi Huang, Hongzhe Shan, Zixia Sheng. AEA Papers and Proceedings, 2019

114 citations recorded by the source corpus.

How does FinTech credit mitigate local credit supply frictions in China's segmented credit market? In our simple theoretical models, we show that FinTech credit (i) expands the extensive margin of credit to borrowers of lower credit scores and (ii) provides relatively more credit to borrowers with lower credit scores. We confirm both predictions based on comprehensive data from one of China's largest FinTech credit providers.

Subfields: Accounting, Economics and Econometrics, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/e66f57b373c5bbbab6e85afa21769a6c3df75e75