{"id":964,"date":"2017-11-29T19:02:15","date_gmt":"2017-11-29T17:02:15","guid":{"rendered":"http:\/\/www.christophbertsch.com\/?p=964"},"modified":"2018-05-23T19:06:31","modified_gmt":"2018-05-23T17:06:31","slug":"new-working-paper-on-the-role-of-trust-in-online-lending","status":"publish","type":"post","link":"https:\/\/www.christophbertsch.com\/?p=964","title":{"rendered":"New working paper on &#8220;The Role of Trust in Online Lending&#8221;"},"content":{"rendered":"<p><strong><a title=\"The Role of Trust in Online Lending\" href=\"http:\/\/www.christophbertsch.com\/data\/TrustOnlineLending_BertschHullQiZhang.pdf\" target=\"_blank\">&#8220;The Role of Trust in Online Lending&#8221;<\/a><\/strong> with Isaiah Hull (Sveriges Riksbank), Yingjie Qi (Stockholm School of Economics) and Xin Zhang (Sveriges Riksbank)<\/a><\/p>\n<ul>\n<li>Abstract:<\/li>\n<\/ul>\n<div class=\"page\" title=\"Page 1\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p>We study the impact of trust on the expansion of online lending in the U.S. over the 2008-2016 period. Using data from the largest platform, we demonstrate that a misconduct-driven decline of trust in traditional banking is associated with a statistically and economically significant increase in online lending at the state level. To the contrary, increased social trust strengthens in-person, bank-based borrowing and informal borrowing, reducing the demand for impersonal online lending. Both of these effects operate primarily through borrowers. We also use a shock that affects only investors to demonstrate that distrust in traditional finance increases participation in online lending.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<ul>\n<li>Keywords: financial development, consumer loans, bank misconduct, FinTech.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;The Role of Trust in Online Lending&#8221; with Isaiah Hull (Sveriges Riksbank), Yingjie Qi (Stockholm School of Economics) and Xin Zhang (Sveriges Riksbank) Abstract: We study the impact of trust on the expansion of online lending in the U.S. over &hellip; <a href=\"https:\/\/www.christophbertsch.com\/?p=964\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,67,52,55,66,50,48,65],"tags":[],"class_list":["post-964","post","type-post","status-publish","format-standard","hentry","category-academic-research","category-bank-misconduct","category-consumer-credit","category-crowdfunding","category-financial-development","category-fintech","category-p2p-lending","category-trust-2"],"_links":{"self":[{"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/posts\/964","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=964"}],"version-history":[{"count":3,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/posts\/964\/revisions"}],"predecessor-version":[{"id":973,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/posts\/964\/revisions\/973"}],"wp:attachment":[{"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}