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Table 4 Regressions results

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

  (1) (2) (3)
Low-prudence Medium Low-prudence Medium Low-prudence Medium
Not verified 0.769*** (0.00433) 0.598*** (0.00626) 0.637*** (0.00349) 0.468*** (0.00479)   
Income div. 5000 0.915*** (0.00591) 0.898*** (0.00966)     
Income div.10,000 0.989*** (0.00702) 0.960*** (0.0114)     
Loan amount div. 5000    1.089*** (0.00717) 1.133*** (0.0124)   
Loan amount div. 10,000    0.791*** (0.00652) 0.718*** (0.0100)   
Length of title      0.975*** (0.00657) 0.924*** (0.0101)
Suspect empl. length      1.046*** (0.00634) 1.024*** (0.0103)
ln(Loan amount) 0.00408*** (0.000296) 0.00361*** (0.000461)    0.0053*** (0.000476) 0.00446*** (0.000686)
Loan amount2 1.390*** (0.00542) 1.410*** (0.00960)    1.379*** (0.00655) 1.408*** (0.0115)
Debt to income ratio^α 1.036*** (0.000300) 1.039*** (0.000483) 1.037*** (0.000309) 1.039*** (0.000501) 1.038*** (0.000372) 1.042*** (0.000601)
Months since recent inquires 0.981*** (0.000432) 0.964*** (0.000736) 0.982*** (0.000429) 0.966*** (0.000733) 0.981*** (0.000528) 0.965*** (0.000891)
Revolving utilitation 0.0753*** (0.000850) 0.0674*** (0.00115) 0.0867*** (0.000963) 0.0798*** (0.00134) 0.0935*** (0.00130) 0.0990*** (0.00208)
Account open 0.975*** (0.000771) 0.983*** (0.00120) 0.970*** (0.000768) 0.980*** (0.00120) 0.983*** (0.000947) 0.997* (0.00146)
Delinquencies in last 2 years 0.710*** (0.00305) 0.701*** (0.00477) 0.694*** (0.00298) 0.687** (0.00465) 0.707*** (0.00366) 0.704*** (0.00564)
Home mortgaged      0.983** (0.00665) 0.858*** (0.00955)
Home owned^α      1.084*** (0.0110) 1.077*** (0.0175)
Employment length^α    1.015*** (0.000743) 1.014*** (0.00124)   
Loan purpose: vacation^α      0.901*** (0.0308) 0.892*** (0.0495)
Loan purpose: credit card      0.289*** (0.00423) 0.205*** (0.00516)
Loan purpose: debt consolidation      0.525*** (0.00493) 0.449*** (0.00651)
Loan purpose: small business      1.426*** (0.0334) 1.481*** (0.0458)
Loan purpose: Home improvement      0.662*** (0.00882) 0.569*** (0.0120)
Year      0.899*** (0.00163) 0.895*** (0.00268)
3-digit zip code      Yes Yes
Observations 1,558,546 1,558,546 1,558,546 1,558,546 1,053,512 1,053,512
  1. This table displays odds ratios from Gologit regressions that m-1 models, where m is the number of clusters. The dependent variable is an indicator of Prudence'screening by platforms, and the highest Prudence is the reference category. Imprudent models are displayed in columns 1, 3 and 5, and neutral groups in Columns 2,4 and 6. The variables with superscript α meet the odds assumptions and are the same in all categories (e.g. debt-to-income ratio, home mortgaged, home owned). For variables violating proportional odds assumptions, refer to coefficients for responses of 2,3 vs 1 group (Low Prudence models) and category 3 vs 1, 2 in Neutral models