How FinTech Enters China's Credit Market

Harald Hau, Yi Huang, Hongzhe Shan and Zixia Sheng

AEA Papers and Proceedings, 2019, vol. 109, 60-64

Abstract: 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.

JEL-codes: E51 G23 O16 P34 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/pandp.20191012
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Citations: View citations in EconPapers (9)

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