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MSMEs meet FinTech: Chance or challenge?

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  • Li, Jianwen

Abstract

This paper studies the impact of micro-, small- and medium-sized enterprises (MSMEs) status in marketplace lending. Using data from one of the most prominent Chinese online lending marketplaces, we find that MSMEs borrowers are less likely to obtain loans and usually set lower interest rates, larger loan amounts, and shorter loan maturity. We also find that MSMEs borrowers tend to miss their repayments and attract lower bid ratios from lenders. Taken together, our results reveal that online marketplace lending is a chance for MSMEs to obtain funding, but its inclusion is limited.

Suggested Citation

  • Li, Jianwen, 2023. "MSMEs meet FinTech: Chance or challenge?," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323006505
    DOI: 10.1016/j.frl.2023.104278
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    More about this item

    Keywords

    MSMEs; FinTech; Online marketplace lending;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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