IDEAS home Printed from https://ideas.repec.org/a/taf/repsxx/v8y2020i4p482-499.html
   My bibliography  Save this article

Do consumer internet behaviours provide incremental information to predict credit default risk?

Author

Listed:
  • Wuqing Wu
  • Dongliang Xu
  • Yue Zhao
  • Xinhai Liu

Abstract

The peer-to-peer lending industry has experienced recent turmoil, posing risks to fintech companies and banks. Based on a random sample of 33,669 borrowers who had downloaded peer-to-peer lending platforms prior to submitting loan applications to a well-known fintech company, Du Xiaoman Financial (formerly Baidu Finance), this article evaluates the predictive power of borrowers’ internet behaviours on credit default risk. After controlling for borrowers’ basic characteristics that are widely used in academic research and enterprise practices, the coefficients of key factors selected from 3,100 variables are economically and statistically significant. The average Kolmogorov-Smirnov value of the prediction model calculated using the hold-out method is approximately 37.09%. The results remain robust in several additional analyses. This study indicates the importance of non-credit information, particularly borrowers’ internet behaviours, in supplementing borrowers’ credit records for both fintech companies and banks.

Suggested Citation

  • Wuqing Wu & Dongliang Xu & Yue Zhao & Xinhai Liu, 2020. "Do consumer internet behaviours provide incremental information to predict credit default risk?," Economic and Political Studies, Taylor & Francis Journals, vol. 8(4), pages 482-499, October.
    • Handle: RePEc:taf:repsxx:v:8:y:2020:i:4:p:482-499
    DOI: 10.1080/20954816.2020.1759765
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/20954816.2020.1759765
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/20954816.2020.1759765?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Davaadorj, Zagdbazar & Enkhtaivan, Bolortuya & Lu, Wenling, 2024. "The role of job titles in online peer-to-peer lending: An empirical investigation on skilled borrowers," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).
    2. Parminder Varma & Shivinder Nijjer & Kiran Sood & Simon Grima & Ramona Rupeika-Apoga, 2022. "Thematic Analysis of Financial Technology (Fintech) Influence on the Banking Industry," Risks, MDPI, vol. 10(10), pages 1-17, September.
    3. Tang, Xinyin & Feng, Chong & Zhu, Jianping & He, Minna, 2022. "How Can We Learn from Borrowers’ Online Behaviors? The Signal Effect of Borrowers’ Platform Involvement on Their Credit Risk," SocArXiv qga8j, Center for Open Science.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:repsxx:v:8:y:2020:i:4:p:482-499. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/reps .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.