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Table 10 Regression results within each risk-class

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

  (1) Low-risk class (2) Medium-risk class (3) High-risk class
Beta Zero-inflate Beta Zero-inflate Beta Zero-inflate
Not verified − 0.0415*** (0.0116) 0.0762*** (0.0264) − 0.0298*** (0.0061) 0.128*** (0.0151) − 0.0137*** (0.0106) 0.136*** (0.0273)
ln(Loan Amount) 0.0369 (0.0242) − 0.170*** (0.0533) 0.00493 (0.0109) − 0.185*** (0.0269) − 0.00356 (0.0176) − 0.223*** (0.0455)
Term − 0.0144 (0.0181) 0.462*** (0.0383) − 0.0225*** (0.0060) 0.140*** (0.0155) − 0.0146* (0.0086) 0.0212 (0.0234)
Interest rate − 0.0529*** (0.00314) − 0.122*** (0.00733) 0.0033*** (0.0006) 0.0233*** (0.0015) 0.00233* (0.0012) 0.0251*** (0.0031)
Revolving utilitation 0.0098 (0.0245) − 0.589*** (0.0572) − 0.0829*** (0.0109) − 0.449*** (0.0281) − 0.108*** (0.0164) − 0.310*** (0.0444)
Months since last delinquent 0.0008*** (0.0002) 0.0024*** (0.0005) 0.0005*** (0.0001) 0.0019*** (0.00029) − 0.00026 (0.0002) 0.00150*** (0.0004)
Debt to income ratio 0.00629*** (0.0007) 0.0096*** (0.0016) 0.00502*** (0.0003) 0.0079*** (0.0007) 0.0051*** (0.0004) 0.0071*** (0.0011)
ln(Annual Income) 0.00741 (0.0251) 0.0871 (0.0561) 0.0399*** (0.0115) 0.0778*** (0.0288) 0.0121 (0.0187) 0.0105 (0.0488)
Employment length 0.00286* (0.00160) 0.00256 (0.00372) 0.0033*** (0.0007) 0.0029 (0.0019) 0.003*** (0.0011) 0.00212 (0.00303)
Loan to annual income − 0.660*** (0.142) 1.362*** (0.295) − 0.250*** (0.0543) 1.039*** (0.130) − 0.204** (0.0799) 0.945*** (0.201)
Loan purpose: credit card 0.0601*** (0.0230) − 0.0692 (0.0514) 0.00690 (0.0103) 0.0758*** (0.0263) − 0.00121 (0.0162) 0.142*** (0.0436)
Loan purpose: debt consolidation 0.0370* (0.0215) − 0.104** (0.0477) 0.00038 (0.00868) 0.0267 (0.0225) 0.00493 (0.0124) 0.116*** (0.0338)
Loan purpose: small business − 0.170*** (0.0575) − 0.427*** (0.142) − 0.106*** (0.0201) − 0.105* (0.0545) 0.069*** (0.0261) − 0.187** (0.0769)
Home mortgaged − 0.506* (0.282) − 0.579 (0.635) 0.0352 (0.136) 0.142 (0.363) 0.387* (0.198) 0.397 (0.559)
Home owned − 0.427 (0.283) − 0.610 (0.636) 0.0682 (0.136) 0.0772 (0.363) 0.420** (0.198) 0.293 (0.560)
3-digit zip       
  Yes Yes Yes Yes Yes Yes
Constant − 1.159*** (0.323) 0.494 (0.731) − 2.281*** (0.751) − 0.774* (0.406) − 2.394*** (0.2271) − 0.757 (0.635)
Observations 32,906   136,791   56,652  
  1. The dependent variable is RR within each risk class. In both models, estimated coefficients are reported. Standard errors are in parentheses
  2. *, ** and *** denotes 1%, 5% and 10% significative levels, respective