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Table 1 Variable description and descriptive statistics

From: Fintech platforms: Lax or careful borrowers’ screening?

Variable Description Obs Median Average SD Plst P99th
Loan amount Loan amount chosen by borrower 1,959,405 13,000 15,109 9,161 1,600 40,000
Loan amount2 Squared term of loan amount 1,959,405 89.73 89.10 12.79 54.43 112.28
Annual income Borrower’s stated annual income 1,959,332 69,959 79,563 116,697 20,000 275,000
DTI Debt to income ratio of loan applicant 1,954,693 17.69 18.50 11.46 1.76 39.89
Delinquencies 2 years The number of 30 + days past-due delinquency in the last 2 years 1,954,784 0 0.31 0.88 0 4
Account open Number of trades open 1,954,784 11 11.69 5.63 3 30
Total account Number of total account 1,954,784 23 24.34 11.99 5 60
Employment length Employment length in years at listing of loan request 1,959,332 3 4.56 3.17 1 11
Inquires last 6 mths The number of borrower’s inquires in the last 6 months 1,954,783 0 0.58 0.88 0 4
LendingClub grade Internal rating assigned by the platform. The grade can take values from A = 7 (the lowest-risk class) to G = 1 (the highest-risk class) 1,959,405 5 5.33 1.26 2 7
Fico score External rating assigned by Credit Agency Bureau. The rating takes different classes from the lowest to highest risk: 1) < 660; 2)660–679; 3) 680–699; 4) 700–739; 5) 740–759; 6)760–779; 7) 780 +  1,954,784 692 700 32.62 662 802
Not verified Dummy variable. It takes value 1 if borrower’s stated information is not verified, 0 otherwise 1,959,332 0 0.32 0.47 0 1
Default Dummy variable. It takes value 1 if loan is defaulted or charged-off within 12–24 months post-duration, 0 otherwise 1,494,741 0.19 0.39 0 0 1
Interest rate The loan interest rate sets by LendingClub 1,959,405 0.12 0.13 0.04 0.05 0.27
Term 5 years Dummy taking the value 1 if the loan’ term is 5 years, 0 otherwise 1,959,405 1 1.27 0.44 1 0
Income divisible by 5000 Dummy taking the value 1 if the borrower'reported income is divisible by 5,000, 0 otherwise 1,959,332 0 0.49 0.5 0 1
Income divisible by 10,000 Dummy taking the value 1 if the borrower’reported income is divisible by 10,000, 0 otherwise 1,959,332 0 0.29 0.45 0 1
Loan amount divisible by 5000 Dummy taking the value 1 if the loan amount is divisible by 5,000, 0 otherwise 1,959,405 0 0.33 0.47 0 1
Loan amount divisible by 10,000 Dummy taking the value 1 if the loan amount is divisible by 10,000, 0 otherwise 1,959,405 0 0.17 0.38 0 1
Revolving utilitation The revolving credit utilitation of the borrower 1,953,322 0.50 0.50 0.24 0.01 0.98
Home owned Dummy taking the value 1 if the Homeownership status provide by borrower is “own”, 0 otherwise 1,959,322 0 0.10 0.30 0 1
Home mortgaged Dummy taking the value 1 if the mortgaged status provide by borrower is “mortgage”, 0 otherwise 1,959,322 0 0.49 0.5 0 1
Prudence grade Prudence of the screening system. It is calculated as the difference between LendingClub grade and Fico score. It takes value 1 (Low Prudence), 2 (Medium) or 3 (High Prudence) 1,959,405 1 1.18 0.48 1 3
Recovery rate Recoveries amount on defaulted loans 291,665 0.088 0.098 0.11 0 0.45
Year Dummy taking the value 1 if the loan is issued between 2016 and 2018, 0 otherwise 1,325,744 1 0.57 0.49 0 1
Suspect employment length Dummy taking the value 1 if the length of employment is equal at 10 years, zero if it is less 10 1,959,440 0 0.40 0.49 0 1
Length of title Number of words provided by borrower in the title of loan 1,959,440 2 2.147 0.69 0 18
Amount to income Amount of the loan issued to the annual income provided by borrower 1,959,250 0.2 0.31 51.09 0.02 0
  1. This table reports the description and the main descriptive statistics the variables involved in the empirical analysis. The sample covers all loans issued from LendingClub between July 2007 and September 2018. The point and comma are used as decimal and thousand separators. The construction of the variables Prudence grade and Recovery rate is presented in the following sections