When FinTech Competes for Payment Flows-Reference-Cited by-同舟云学术

When FinTech Competes for Payment Flows

Published:2022-04-27 Issue:11 Volume:35 Page:4985-5024
ISSN:0893-9454
Container-title:The Review of Financial Studies
language:en
Short-container-title:

Author:

Parlour Christine A¹,Rajan Uday²,Zhu Haoxiang³

Affiliation:

1. University of California-Berkeley Haas School of Business, , USA

2. University of Michigan Stephen M. Ross School of Business, , USA

3. MIT Sloan School of Management and NBER , USA

Abstract

Abstract We study the impact of FinTech competition in payment services when a monopolist bank uses payment data to learn about consumers’ credit quality. Competition from FinTech payment providers disrupts this information spillover. The bank’s price for payment services and its loan offers are affected. FinTech competition promotes financial inclusion, may hurt consumers with a strong bank preference, and has an ambiguous effect on the loan market. Both FinTech data sales and consumer data portability increase bank lending, but the effects on consumer welfare are ambiguous. Under mild conditions, consumer welfare is higher under data sales than with data portability.

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics,Finance,Accounting

Link

https://academic.oup.com/rfs/advance-article-pdf/doi/10.1093/rfs/hhac022/43970624/hhac022.pdf

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