The real effects of FinTech lending on SMEs: Evidence from loan applications

Detalhes bibliográficos
Autor(a) principal: Eça, Afonso
Data de Publicação: 2022
Outros Autores: Ferreira, Miguel A., Prado, Melissa P., Rizzo, Antonino Emanuele
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/143363
Resumo: We examine the effects of FinTech lending on firm policies using proprietary data on loan applications and loans granted from a peer-to-business platform. We find that FinTech serves high quality and creditworthy small businesses who already have access to bank credit. Firms access FinTech to obtain long-term unsecured loans and reduce their exposure to banks with less liquid assets, stable funds, and capital. We find that firms with access to FinTech loans significantly increase investment, employment, and sales growth relative to firms that get their loan application rejected. We identify these effects by exploiting the number of banks in each municipality as a source of exogenous variation in the probability of obtaining a FinTech loan. Our findings suggest that FinTech allows firms to improve their financial flexibility and reduce bank dependence.
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spelling The real effects of FinTech lending on SMEs: Evidence from loan applicationsFinTechSMEsSmall business lendingLending relationshipsFirm growthInvestmentLeverageDebt structureWe examine the effects of FinTech lending on firm policies using proprietary data on loan applications and loans granted from a peer-to-business platform. We find that FinTech serves high quality and creditworthy small businesses who already have access to bank credit. Firms access FinTech to obtain long-term unsecured loans and reduce their exposure to banks with less liquid assets, stable funds, and capital. We find that firms with access to FinTech loans significantly increase investment, employment, and sales growth relative to firms that get their loan application rejected. We identify these effects by exploiting the number of banks in each municipality as a source of exogenous variation in the probability of obtaining a FinTech loan. Our findings suggest that FinTech allows firms to improve their financial flexibility and reduce bank dependence.Nova School of Business and EconomicsRUNEça, AfonsoFerreira, Miguel A.Prado, Melissa P.Rizzo, Antonino Emanuele2022-08-30T17:22:09Z2022-04-222022-04-22T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/143363engEça, Afonso, Ferreira, Miguel A., Prado, Melissa Porras, Rizzo, Antonino Emanuele. The real effects of FinTech lending on SMEs: Evidence from loan applications (March 2022) Nova SBE Working Paper Series No. 649info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T05:21:40Zoai:run.unl.pt:10362/143363Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:50:54.281213Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The real effects of FinTech lending on SMEs: Evidence from loan applications
title The real effects of FinTech lending on SMEs: Evidence from loan applications
spellingShingle The real effects of FinTech lending on SMEs: Evidence from loan applications
Eça, Afonso
FinTech
SMEs
Small business lending
Lending relationships
Firm growth
Investment
Leverage
Debt structure
title_short The real effects of FinTech lending on SMEs: Evidence from loan applications
title_full The real effects of FinTech lending on SMEs: Evidence from loan applications
title_fullStr The real effects of FinTech lending on SMEs: Evidence from loan applications
title_full_unstemmed The real effects of FinTech lending on SMEs: Evidence from loan applications
title_sort The real effects of FinTech lending on SMEs: Evidence from loan applications
author Eça, Afonso
author_facet Eça, Afonso
Ferreira, Miguel A.
Prado, Melissa P.
Rizzo, Antonino Emanuele
author_role author
author2 Ferreira, Miguel A.
Prado, Melissa P.
Rizzo, Antonino Emanuele
author2_role author
author
author
dc.contributor.none.fl_str_mv RUN
dc.contributor.author.fl_str_mv Eça, Afonso
Ferreira, Miguel A.
Prado, Melissa P.
Rizzo, Antonino Emanuele
dc.subject.por.fl_str_mv FinTech
SMEs
Small business lending
Lending relationships
Firm growth
Investment
Leverage
Debt structure
topic FinTech
SMEs
Small business lending
Lending relationships
Firm growth
Investment
Leverage
Debt structure
description We examine the effects of FinTech lending on firm policies using proprietary data on loan applications and loans granted from a peer-to-business platform. We find that FinTech serves high quality and creditworthy small businesses who already have access to bank credit. Firms access FinTech to obtain long-term unsecured loans and reduce their exposure to banks with less liquid assets, stable funds, and capital. We find that firms with access to FinTech loans significantly increase investment, employment, and sales growth relative to firms that get their loan application rejected. We identify these effects by exploiting the number of banks in each municipality as a source of exogenous variation in the probability of obtaining a FinTech loan. Our findings suggest that FinTech allows firms to improve their financial flexibility and reduce bank dependence.
publishDate 2022
dc.date.none.fl_str_mv 2022-08-30T17:22:09Z
2022-04-22
2022-04-22T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/143363
url http://hdl.handle.net/10362/143363
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Eça, Afonso, Ferreira, Miguel A., Prado, Melissa Porras, Rizzo, Antonino Emanuele. The real effects of FinTech lending on SMEs: Evidence from loan applications (March 2022) Nova SBE Working Paper Series No. 649
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Nova School of Business and Economics
publisher.none.fl_str_mv Nova School of Business and Economics
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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