FinTech Adoption and Household Risk-Taking: From Digital Payments to Platform Investments

Claire Yurong Hong, Xiaomeng Lu and Jun Pan

No 28063, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study household finance in the age of FinTech, where consumption, payments, and investments take place via all-in-one super-apps. We hypothesize that FinTech adoption can improve household risk-taking by breaking down the traditional physical and psychological barriers and enhance financial inclusion. Taking advantage of an individual-level FinTech dataset, we find that higher FinTech adoption, both at the individual-level and the county-level instrumented by distance-from-Hangzhou, results in higher participation and more risk-taking in mutual-fund investments. Moreover, individuals who are otherwise more constrained, those with higher risk tolerance or living in under-banked counties, stand to benefit more from the advent of FinTech.

JEL-codes: G11 G50 (search for similar items in EconPapers)
Date: 2020-11
New Economics Papers: this item is included in nep-cna, nep-fdg and nep-pay
Note: AP
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.nber.org/papers/w28063.pdf (application/pdf)

Related works:
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:nbr:nberwo:28063

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w28063

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().