Bank misconduct and online lending

Bertsch, Christoph; Hull, Isaiah; Qi, Yingjie; Zhang, Xin

doi:10.1016/j.jbankfin.2020.105822

Cited by 33 publications

(23 citation statements)

References 31 publications

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“…These corroborate the role of distrust in banks, which spread widely in the aftermath of the financial crisis of 2007-2009, being a factor in the early use of other peer-to-peer fintech technologies (see e.g. Saiedi et al 2017;Bertsch et al 2017;Thakor and Merton 2018). We also find greater supply of and demand for Bitcoin infrastructure in years in which countries undergo inflation crises, potentially indicative of a loss of faith in central-bank issued currencies or using bitcoin as an investment or store of value.…”

Section: Supported Nodes and Merchantssupporting

confidence: 59%

“…While to the best of our knowledge no systematic investigation has been done regarding distrust to banks and financial institutions as a driver of support for Bitcoin, the role of trust to banks has started to be explored in other FinTech settings. Saiedi et al (2017) and Bertsch et al (2017), show that a decline in trust in banks and financial institutions increases participation respectively, by lenders and borrowers, in online peer-to-peer (P2P) lending markets. Theoretical papers modelling trust-driven substitutions between intermediaries and fintech firms are also emerging (e.g.…”

Section: Banking Market Development and Competitionmentioning

confidence: 99%

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Essays on Financial Technology and SME Finance: A Tale of Two Effects of the Global Financial Crisis: Financing SMEs and Innovative Financing

Saiedi¹

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as great as any I have experienced. I owe this to many. First, I would like to thank my supervisors at UPM, Felipe Ruiz, and at KTH, Anders Broström and Ali Mohammadi. Their patience and unwavering support in directing my curiosity and musings into meaningful and grounded endeavors has been priceless. Felipe, thank you so much for facilitating the way for me to engage in exciting research in finance and our enriching, thought-provoking and enjoyable discussions. You have always been very supportive of my endeavors and ambitions along the way and I immensely appreciate that. Anders, you are a great advisor, thoughtful, patient, committed and unyieldingly supportive. Thank you for giving me, the freedom to explore my ideas, and great support in guiding them. Ali, you are as great a teacher as one can hope for, energetic, dedicated, pedagogical, and untiringly optimistic. I value your advice greatly, not merely professionally, but personally as well.I would like to thank Gustavo Morales for his constant help and friendship, even going out of his way to make me feel welcome at UPM. That also goes for Isabel Herran who was devotedly helping me and others throughout the years. I would like to thank Hans Lööf for his invaluable help and for trusting me to deliver lectures or lead Masters' students. I would like to thank Andreas Stephan and Gustav Martinsson for valuable comments on my papers. I benefitted immensely from visiting, attending and engaging in seminars and courses at the Swedish House of Finance (SHoF) at Stockholm School of Economics for more than two years. I would particularly like to thank Per Strömberg, Ramin Baghai and Daniel Metzger at SHoF for fascinating conversations and courses on research in financial economics.This journey was enriched enormously because it was shared with fellow Ph.D. students and colleagues,

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Section: Supported Nodes and Merchantssupporting

confidence: 59%

Section: Banking Market Development and Competitionmentioning

confidence: 99%

Essays on Financial Technology and SME Finance: A Tale of Two Effects of the Global Financial Crisis: Financing SMEs and Innovative Financing

Saiedi¹

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“…This research also contributes to the literature in Internet financing and information sharing. Recently, scholars have been substantially attracted to financial innovations enabled by the development of Internet technology, such as online lending (Balyuk & Davydenko, 2019; Bertsch et al, 2020) and P2P lending (Serrano-Cinca & Gutiérrez-Nieto, 2016; Zhao et al, 2017). However, the discussion on sharing transaction data to justify loan applications is still limited in the literature (Pei & Yan, 2019).…”

Section: Discussionmentioning

confidence: 99%

“…In the lase decade, the development of Internet technology has dramatically changed the traditional way of financial services in practice, such as payment, settlement, and risk management (Dong et al, 2020; Zhao, 2018). Financial innovations, such as online lending (Balyuk & Davydenko, 2019; Bertsch et al, 2020) and P2P lending (Serrano-Cinca & Gutiérrez-Nieto, 2016; Zhao et al, 2017), are creating opportunities and challenges for both borrowers and lenders. Within this context, this paper aims to coordinate a three-level financing supply chain consisting of an online retailer, a manufacturer, and their e-commerce platform-backed finance company.…”

Section: Literature Reviewmentioning

confidence: 99%

Coordinating Supply Chain Financing for E-commerce Companies Through a Loan Contract

Zhang

Kuo

et al. 2021

SAGE Open

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This paper considers an online retailer and his or her manufacturer, both facing financial constraints and wishing to get loans from their e-commerce platform-backed finance company. Based on shared transaction data and monitored sales accounts, a tripartite loan contract is proposed to coordinate three parties’ actions in this supply chain financing problem. We prove that the proposed loan contract aligns the decentralized decision-makings of each party and duplicates the optimal channel performance under a fully integrated decision-making framework. A case study is then conducted to illustrate the performance of the proposed loan contract. The result shows that the proposed loan contract outperforms wholesale-price contracts, where coordination does not take place, and buyback contracts, where coordination happens between the retailer and the manufacturer only. Furthermore, a sensitivity analysis reveals that profit allocations among the lender, the retailer, and the manufacturer resulted from the proposed loan contract are more balanced when the cost-to-retail ratio or risk premium is high.

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“…Empirical evidence shows that entrepreneurs turn more often to equity crowdfunding if banks are in distress (Blaseg et al, 2021). Bertsch et al (2020) show that bank misconduct, as measured by consumer complaints, led to debt-based crowdfunding becoming more prevalent in the United States.…”

Section: Crowdfunding Investment Motivesmentioning

confidence: 99%

Do retail investors value environmental impact? A lab-in-the-field experiment with crowdfunders

Siemroth,

Hornuf

2021

SSRN Journal

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Are investors willing to give up a higher return if the investment generates positive environmental impact? We investigate this question with a decision experiment among crowdfunders, where they choose between a higher return or environmental impact. Overall, 65% of investors choose environmental impact at the expense of a higher return for sufficiently large impact, 14% choose impact independent of the magnitude of impact, while 21% choose the higher return independent of impact. Combining the experimental data with historical investments, we find that investors allocate a larger share of funds to green projects if they value environmental impact more, and if they expect green projects to be more profitable. These findings suggest that investors have a preference for positive environmental impact, and satisfy it by investing in green projects. We further show that the preference for environmental impact is distinct from a preference for positive social impact. Finally, we introduce new survey measures of impact for future use, which are experimentally validated and predict field behavior.

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Bank misconduct and online lending

Cited by 33 publications

References 31 publications

Essays on Financial Technology and SME Finance: A Tale of Two Effects of the Global Financial Crisis: Financing SMEs and Innovative Financing

Essays on Financial Technology and SME Finance: A Tale of Two Effects of the Global Financial Crisis: Financing SMEs and Innovative Financing

Coordinating Supply Chain Financing for E-commerce Companies Through a Loan Contract

Do retail investors value environmental impact? A lab-in-the-field experiment with crowdfunders

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