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Lending business models and FinTechs efficiency

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  • Pampurini, Francesca
  • Pezzola, Annagiulia
  • Quaranta, Anna Grazia

Abstract

The aim of the study is to analyse which managerial issues can be considered the main efficiency drivers for all Italian FinTechs engaged in lending. We measure their efficiency in the period 2020–2022 via Stochastic Data Envelopment Analysis. The main determinants seem to be ROA and cost-to-income ratio; this means that the ability to control both the business risk level and costs is crucial for FinTechs’ managers and other players interested in M&A deals in this industry. The results are useful for FinTechs, other financial players, regulators and supervisors in defining homogeneous rules in the lending sector.

Suggested Citation

  • Pampurini, Francesca & Pezzola, Annagiulia & Quaranta, Anna Grazia, 2024. "Lending business models and FinTechs efficiency," Finance Research Letters, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:finlet:v:65:y:2024:i:c:s154461232400549x
    DOI: 10.1016/j.frl.2024.105519
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    More about this item

    Keywords

    Lending business models; FinTech; Efficiency; Stochastic data envelopment analysis;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • 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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