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 |