Consumer behaviour and credit supply: Evidence from an Australian FinTech lender

Mingze Gao, Henry Leung, Linhui Liu and Buhui Qiu

Finance Research Letters, 2023, vol. 57, issue C

Abstract: Using a proprietary dataset from an Australian leading FinTech lender, we provide insights into the effect of consumer behaviour on FinTech lending patterns. Out of seven consumption categories, gambling expenses significantly reduce the lender's willingness to fulfill loan requests. Cash usage and repeated borrowing are related to lower offer-to-requested loan ratios. The FinTech lender prefers to lend to borrowers who are married, have dependents and/or aged over 30. However, for such mature borrowers, cash usage and repeated borrowing increasingly reduce the approval likelihood of their loan requests. Taken together, our empirical evidence suggests that consumer behaviour affects FinTech lending decisions.

Keywords: FinTech lending; Consumer behaviour; Borrower behaviour (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005779

DOI: 10.1016/j.frl.2023.104205

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