Research
Technology and credit market information asymmetries
Winner of the Young Economist Seminar at the 2022 Dubrovnik Economic Conference
Abstract:
This project explores the impact that technologically oriented lenders have on credit market information asymmetries. New to other studies in the literature, I focus on both adverse selection and moral hazard. The fintechs are better at screening, diminishing adverse selection, while traditional banks remain better at monitoring borrowers. The importance of moral hazard decreases the informational advantage coming from better screening and implies that the more technologically enabled player may not always have a market presence if it cannot properly discipline the borrower.Presentations: Symposium of the Spanish Economic Association (Valencia, 2022), Naples School of Economics and Finance workshop (Naples, 2022), Jornadas de Economia Industrial (Gran Canaria, 2022), Finance Forum PhD session (Santiago de Compostela, 2022), Young Economist Seminar at the Dubrovnik Economic Forum (Dubrovnik, 2022), Bank for International Settlements research meeting (Basel, 2022).
Privacy regulation and fintech lending
with Sebastian Doerr, Leonardo Gambacorta and Luigi Guiso
Best paper award at FMARC 2023
Abstract
Consumers dislike sharing data with fintechs but better access to data can improve loan market outcomes. We study how the California Consumer Privacy Act (CCPA), which grants users control over and mitigates concerns about sharing data, affects bank and fintech lending. Difference-in-differences estimations show that the CCPA increases mortgage applications to fintechs relative to banks in California. Further evidence suggests that applicants' greater willingness to share data improves fintechs' screening process: they engage in more individualized pricing, deny more applications, and increase their use of non-traditional data. In turn, they offer lower loan rates, in particular to traditionally under-served groups.Presentations: MoFIR 2023, BSE Summer Forum 2023, FIRS 2023, Swiss Winter Conference in Financial Intermediation 2023, UBC Bureau of Asset Management Winter Finance Conference 2023.
Portfolio choices and bank branches
with Jin Cao, Ismael Moreno-Martinez and Kasper Roszbach
Crypto regulation and VC funding. Same rules, different outcomes
with Matteo Aquilina and Giulio Cornelli