Impact of marketplace lending on consumers' future borrowing capacities and borrowing outcomes

• 成果类型: Article
• 署名作者: Chava, Sudheer; Ganduri, Rohan; Paradkar, Nikhil; Zhang, Yafei
• 署名单位: University System of Georgia; Georgia Institute of Technology; Emory University; University System of Georgia; University of Georgia
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.06.005
• 发表日期: 2021
• 页码: 1186-1208
• 关键词: FinTech; Marketplace lending; Consumer credit; Credit scores; defaults

摘要

Using comprehensive credit bureau data, we document that consumers who borrow from marketplace lending (MPL) platforms have lower credit scores and higher default rates in the long run relative to observably similar applicants for bank loans. The long-run credit scores and default rates of MPL borrowers are especially worse when the MPL platforms provide less information to MPL investors, when MPL borrowers are benchmarked against relationship bank borrowers, and for one-time MPL borrowers as compared to repeat MPL borrowers. Overall, our results suggest that MPL lenders face greater information asymmetries with respect to their borrowers than traditional banks. (c) 2021 Elsevier B.V. All rights reserved.