Aug. 31, 2021, Tuesday
Eastern Daylight Time: 10-11:30am
China Standard Time: 10-11:30pm
Central European Summer Time: 4-5:30pm
Yao Zeng (Wharton)
Dr. Yao Zeng is an Assistant Professor of Finance at Wharton School, University of Pennsylvania. Dr. Zeng works on the intersection of asset pricing and corporate finance with a focus on financial intermediation. His research has been published on Journal of Finance, Journal of Financial Economics,Review of Financial Studies. Dr. Zeng received Ph.D. in Economics from Harvard University in 2016 and was on the finance faculty of the University of Washington Foster School of Business from 2016 to 2020.
Topic: FinTech Lending and Cashless Payments (working paper)
Abstract: This study provides a new perspective on the rise of FinTech lending by uncovering an informational synergy with cashless payments. Theoretically, FinTech lenders screen borrowers more efficiently when borrowers use cashless payments that produce transferable and verifiable information. In turn, because borrowers expect lenders to rely on such payment information to screen them, a strategic consideration to stand out from non-adopting borrowers pushes more borrowers to adopt cashless payments. Using novel loan application data from a leading Indian FinTech lender targeting small businesses, we find that a larger use of cashless payments predicts a higher likelihood of loan approval, a lower interest rate, and lower default conditional on the interest rate obtained. These relationships are stronger for firms of higher observable risk, and for firms of higher quality that can be only inferred from payment records. This synergy supports data sharing and open banking, and more broadly the development of an alternative banking model without a balance sheet or traditional banking relationships.
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Professor Liyan Yang (Toronto), Sep 23
Professor Zheng Song (CUHK), Oct 19
Professor Darrell Duffie (Stanford), Nov 9
Professor Catherine Tucker (MIT), TBD
Professor Patrick Bolton (Columbia), TBD
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