Can FinTech reduce disparities in access to finance? Evidence from the Paycheck Protection Program

• 成果类型: Article
• 署名作者: Erel, Isil; Liebersohn, Jack
• 署名单位: University System of Ohio; Ohio State University; National Bureau of Economic Research; European Corporate Governance Institute; University of California System; University of California Irvine
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2022.05.004
• 发表日期: 2022
• 页码: 90-118
• 关键词: Financial technology; PPP; CORONAVIRUS; Financial inclusion; Nonbank; Online bank

摘要

New technology promises to expand the supply of financial services to small businesses poorly served by banks. Does it succeed? We study the response of FinTech to financial ser-vices demand created by the introduction of the Paycheck Protection Program. FinTech is disproportionately used in ZIP codes with fewer bank branches, lower incomes, and more minority households, and in industries with fewer banking relationships. It is also greater in counties where the economic effects of the COVID-19 pandemic were more severe. Sub-stitution between FinTech and banks is economically small, implying that FinTech mostly expands, rather than redistributes, the supply of financial services.(c) 2022 Elsevier B.V. All rights reserved.