HBS: Fintech screened lending leads to higher default rates?

according to Harvard Business School, this does, in fact, appear to be the case. When screening potential borrowers, Fintech driven lenders integrates far more data than traditional lenders consider e.g., utility bills of rent payments. The additional data is intended to grant credit to a wider number of borrowers, and is touted as one of Fintech driven lending key USPs. About a five minute read.

Comment: so, the hype surrounding many Fintechs is increasingly revealed as just that: hype. Spin. Misinformation. The rush to raise funds saw many questionable claims advanced, but now that we’re gaining increased data the truth is starting to come out. In this case, borrowers selected by Fintech driven lending systems had a sharply INCREASED rate of default. Not really what was promised, was it?