Luohan Academy


FinTech Lending and Cashless Payments

Speakers : Yao Zeng


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 FinanceJournal 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.

Join Zoom Webinar:

- Meeting ID: 827 9048 1364

Passcode: 991362

Meeting instructions:

-  The webinar will take place via Zoom, it will last for 90 minutes.

-  Please mute your microphone during the talk, this permits better sound quality by our speakers.

-  You are encouraged to ask questions or provide comments during the seminar.   

Forthcoming webinars by:

Professor Ron Kaniel (Rochester), Sep 13

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

Luohan Webinar is a regular event of the Academy purported to provide a platform for world-class scholars to present their frontier research and exchange views on digital technology and digital economy, among other related themes. We believe that truth can only be uncovered through open and critical discussions.


If you would like to participate, please contact our Economist Dr. Xijie Gao ( ).



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