The effects of FinTech adoption on bank loan spreads

IF 1.9 Q2 BUSINESS, FINANCE Managerial Finance Pub Date : 2024-09-19 DOI:10.1108/mf-03-2024-0238
Jieying Hong, Na Wang, Tianpeng Zhou
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Abstract

Purpose

This paper aims to examine the impact of traditional banks’ financial technology (FinTech) adoption on corporate loan spreads and lending practices.

Design/methodology/approach

This study examines the impact of FinTech adoption by banks on corporate loan spreads and lending practices. By analyzing data from bank 10-K filings, we develop a novel metric to assess FinTech adoption at the individual bank level. Our analysis reveals a significant positive correlation between increased FinTech adoption and higher corporate loan spreads, particularly for loans that are relatively informationally opaque. This causality is further validated through a quasi-natural experiment. Additionally, we identify trends toward loans with smaller sizes and longer maturities in banks with advanced FinTech integration.

Findings

Using a sample of corporate loans issued from 1993 to 2020, this paper documents a significant positive relationship between a bank’s increased FinTech adoption and higher loan spreads. This correlation is especially noticeable for loans that are informationally opaque. Moreover, the paper reveals trends toward smaller loan sizes and longer maturities with advanced FinTech integration in banks. Overall, these findings indicate FinTech enhances efficiency in processing hard information and holds the potential to enhance financial inclusion.

Originality/value

This paper contributes to two significant strands of finance literature. First, it highlights how banks with advanced FinTech integration gain advantages through enhanced processing of hard information. Furthermore, it underscores the role of FinTech in promoting financial inclusion, particularly for those borrowers facing informational opacity.

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采用金融科技对银行贷款利差的影响
本文旨在研究传统银行采用金融科技(FinTech)对企业贷款息差和贷款行为的影响。本研究探讨了银行采用金融科技对企业贷款息差和贷款行为的影响。通过分析银行 10-K 申报文件中的数据,我们开发了一种新的指标来评估单个银行采用金融科技的情况。我们的分析表明,金融科技应用的增加与企业贷款利差的提高之间存在明显的正相关关系,尤其是对于信息相对不透明的贷款而言。这一因果关系通过准自然实验得到了进一步验证。此外,我们还发现,在金融科技整合程度较高的银行中,贷款的规模趋向于更小,期限趋向于更长。研究结果通过对 1993 年至 2020 年期间发放的企业贷款进行抽样调查,本文记录了银行更多地采用金融科技与更高的贷款利差之间存在显著的正相关关系。这种相关性在信息不透明的贷款中尤为明显。此外,本文还揭示了随着金融科技在银行中的进一步融合,贷款规模越来越小、期限越来越长的趋势。总体而言,这些研究结果表明,金融科技提高了处理硬信息的效率,并具有增强金融包容性的潜力。首先,它强调了具有先进金融科技整合能力的银行如何通过加强对硬信息的处理来获得优势。此外,它还强调了金融科技在促进金融包容性方面的作用,尤其是对那些面临信息不透明问题的借款人而言。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Managerial Finance
Managerial Finance BUSINESS, FINANCE-
CiteScore
3.30
自引率
12.50%
发文量
103
期刊介绍: Managerial Finance provides an international forum for the publication of high quality and topical research in the area of finance, such as corporate finance, financial management, financial markets and institutions, international finance, banking, insurance and risk management, real estate and financial education. Theoretical and empirical research is welcome as well as cross-disciplinary work, such as papers investigating the relationship of finance with other sectors.
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