Banks have long relied on face to face or voice interactions with their customers; these are often easy to measure,...
The report is titled “Do Fintech Lenders Penetrate Areas That Are Underserved by Traditional Banks”; the report used account-level data from LendingClub and other US Banks with assets over $50 billion; according to the paper’s abstract: “We find that LendingClub’s consumer lending activities have penetrated areas that may be underserved by traditional banks, such as in highly concentrated markets and in areas that have fewer bank branches per capita. We also find that the portion of LendingClub loans increases in areas where the local economy is not performing well.” Source
The “adrenalin ride” of fintech has been a big draw for banking heavyweights who have been facing tougher regulation, increasingly...
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