“…Early studies in this area investigate how fund providers evaluate borrowers (e.g., Michels 2012;Duarte, Siegel, and Young 2012;Zhang and Liu 2012;Lin, Prabhala, and Viswanathan 2013). More recent studies consider the market mechanism (e.g., Wei and Lin 2017;Vallee and Zeng 2019;Du, Li, T. Lu, and X. Lu 2019) and the interaction between peer-to-peer (P2P) lending platforms and the traditional banking system (e.g., Butler, Cornaggia, and Gurun 2017;Cornaggia, Wolfe, and Yoo 2018;Tang 2019;Chava, Paradkar, and Zhang 2019). Studying this interaction is important because a borrower can typically choose to borrow from a bank, a P2P lending platform, or both.…”