GENDER GAP IN CONSUMER LOAN PERFORMANCE: EVIDENCE FROM FINTECH LENDING IN AN EMERGING ECONOMY

dc.contributor.authorTiniç, Murat
dc.contributor.authorTinic, Murat
dc.contributor.authorTumer-Alkan, Gunseli
dc.contributor.authorKaraman, Hakki Deniz
dc.date.accessioned2023-10-19T15:11:46Z
dc.date.available2023-10-19T15:11:46Z
dc.date.issued2023
dc.department-temp[Savaser, Tanseli] Vassar Coll, Dept Econ, Poughkeepsie, NY 12601 USA; [Tinic, Murat; Karaman, Hakki Deniz] Kadir Has Univ, Dept Int Trade & Finance, Fatih Istanbul, Turkiye; [Tumer-Alkan, Gunseli] Vrije Univ Amsterdam, Dept Finance, Amsterdam, Netherlandsen_US
dc.description.abstractThis study examines whether fintech lending further enhances or mitigates the gender-based differences in consumer loan performance in an emerging market. Using a proprietary dataset of over 5.5 million consumer loans offered by the fifth-largest bank in Turkey and its fintech subsidiary, the authors first document a significant gender gap in average loan performances. In line with the previous empirical findings, men are more likely to default on their debt. The average difference in loan performance is around 10 basis points, indicating a statistically and economically significant magnitude even after controlling for an exhaustive list of demographic and credit characteristics. Next, the authors show that the gender gap in loan performance is more pronounced in areas where women have more outside options in terms of social and economic opportunities. Specifically, the authors observe that gender-based differences are predominantly evident in cities with higher divorce rates, lower young and elderly dependence, smaller household sizes, and higher labor force participation of women. Since the child and elderly care duties disproportionately influence women's ability to participate in economic life, their ability to find resources to pay their loans in a timely manner improves more in comparison to men in areas where women face fewer restrictions to seek local economic opportunities outside the household. Finally, the authors document that fintech loans partially mitigate the gender-based differences in consumer loan performance in those cities. This result suggests that the developments in financial technology can reduce the inefficiencies associated with human involvement in credit decisions, narrowing the gender gap in loan outcomes to the extent that these gaps are attributable to the supply-side factors that involve human judgment and biases.en_US
dc.identifier.citation0
dc.identifier.doi10.1108/S1569-376720220000022005en_US
dc.identifier.endpage92en_US
dc.identifier.isbn978-1-80262-947-7
dc.identifier.isbn978-1-80262-948-4
dc.identifier.issn1569-3767
dc.identifier.scopusqualityN/A
dc.identifier.startpage77en_US
dc.identifier.urihttps://doi.org/10.1108/S1569-376720220000022005
dc.identifier.urihttps://hdl.handle.net/20.500.12469/5208
dc.identifier.volume22en_US
dc.identifier.wosWOS:001054428200005en_US
dc.identifier.wosqualityN/A
dc.khas20231019-WoSen_US
dc.language.isoenen_US
dc.publisherEmerald Group Publishing Ltden_US
dc.relation.ispartofFintech, Pandemic, and The Financial System: Challenges and Opportunitiesen_US
dc.relation.publicationcategoryKitap Bölümü - Uluslararasıen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectBankingen_US
dc.subjectcrediten_US
dc.subjectfinancial technologyen_US
dc.subjectCreditEn_Us
dc.subjectautomated lendingen_US
dc.subjectgenderen_US
dc.subjectCredit
dc.subjectemerging marketen_US
dc.titleGENDER GAP IN CONSUMER LOAN PERFORMANCE: EVIDENCE FROM FINTECH LENDING IN AN EMERGING ECONOMYen_US
dc.typeBook Parten_US
dspace.entity.typePublication
relation.isAuthorOfPublicationaa4f4456-8a8a-43b4-860b-3415380ff06b
relation.isAuthorOfPublication.latestForDiscoveryaa4f4456-8a8a-43b4-860b-3415380ff06b

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