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 | |||