Information technology in banking and entrepreneurship

Toni Ahnert, Sebastian Doerr, Nicola Pierri and Yannick Timmer

No 2956, Working Paper Series from European Central Bank

Abstract: We study the importance of information technology (IT) in banking for entrepreneurship. Guided by a parsimonious model, we establish that job creation by young firms is stronger in US counties more exposed to banks with greater IT adoption. We present evidence consistent with banks' IT adoption spurring entrepreneurship through a collateral channel: entrepreneurship increases by more in IT-exposed counties when house prices rise. Further analysis suggests that IT improves banks' ability to determine collateral values, in particular when collateral appraisal is more complex. IT also reduces the time and cost of disbursing collateralized loans. JEL Classification: D82, G21, L26

Keywords: collateral; entrepreneurship; information technology; screening; technology in banking (search for similar items in EconPapers)
Date: 2024-07
New Economics Papers: this item is included in nep-ent, nep-ict and nep-inv
Note: 848910
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2956~2d6075a710.en.pdf (application/pdf)

Related works:
Working Paper: Information Technology in Banking and Entrepreneurship (2024)
Working Paper: Information Technology in Banking and Entrepreneurship (2024)
Working Paper: Information Technology in Banking and Entrepreneurship (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20242956

Access Statistics for this paper

More papers in Working Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().