The real effects of FinTech lending on small and medium-sized enterprises

Research output: Working paper

Abstract

The rapid growth of FinTech platforms creates challenges and opportunities for financial markets. This column uses a new dataset from a Portuguese FinTech platform to study the determinants of lending demand and the consequences of FinTech loans for small and medium-sized enterprises. It finds that FinTech lending caters mainly to larger SMEs, with higher profitability and a lower credit risk. Additionally, it shows that firms increase assets, employment, and sales following an approved FinTech loan. Finally, FinTech lending allows firms to diversify their pool of lenders and reduce exposure to shocks in the banking system.
Original languageEnglish
PublisherCentre for Economic Policy Research (CEPR)
Publication statusPublished - 9 Dec 2021

Publication series

NameCEPR Discussion Paper Series
PublisherCentre for Economic Policy Research (CEPR)
No.DP16684

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