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Financial Innovation

Table 7 Models’ comparison

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

Model

RMSE

MAE

Standard beta regression

0.123

0.0050

Zero–one inflated beta regression

0.003

0.0003

Beta with logistic regression

0.005

0.0091

Fractional regression with logit estimator

0.129

0.0048

  1. This table lists the predictive results of different approaches applied in the empirical analysis. The dependent variable is the recovery rate on defaulted loans issued from LendingClub between July 2007 and September 2018
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