Fintech lending characteristics and loan repayment performance analyses
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Date
2021
Authors
Karaman, Hakki Deniz
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Kadir Has Üniversitesi
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Abstract
Bu tez, gelişmekte olan bir pazar olan Türkiye'de geleneksel bankacılık ve finansal teknoloji şirketlerinden kredi alan müşteriler arasındaki kredi performansı farklılıklarını incelemektedir. Çalışmada, Türkiye'nin en büyük beşinci özel bankasının geleneksel bankacılık kanalları ve yine ilgili bankanın finansal teknoloji iştirakinin online olarak verdiği tüketici kredilerine ilişkin bireysel düzeydeki verilerine dayanmaktadır. 5,5 milyonu aşkın ihtiyaç kredisi kullanılarak, öncelikle 2014-2020 yılları arasında Türkiye'nin tüm illerinde finansal teknoloji kredilerinin payındaki artış incelendi. Daha sonra, finansal teknoloji kredi müşterilerinin geleneksel bankacılık kredi müşterileri ile demografik ve kredi bazında karşılaştırmaları yapıldı. Bu yeni tip müşterilerin daha genç, daha iyi eğitimli, daha yüksek gelire, daha yüksek tasarruf seviyelerine sahip oldukları, daha az faiz ödedikleri ve geleneksel bankacılık müşterilerinden daha iyi kredi geçmişine sahip oldukları gösterildi. Buna ek olarak, finansal teknoloji kredi müşterilerinin gelir, tasarruf, cinsiyet, yaş, eğitim, meslek ve kredibilite gibi kişisel özellikleri veya faiz oranı, vade ve kredi büyüklüğü gibi kredi özelliklerini kontrol değişkeni olarak kullandıktan sonra bile temerrüde düşme olasılıklarının daha düşük olduğu gösterildi. Ayrıca bu sonuçların doğruluğu çeşitli alt örneklem metotları ile de teyit edildi. Sonuçlar, finansal teknoloji şirketlerinin daha iyi veri madenciliği teknikleri kullanarak Türkiye gibi gelişmekte olan pazarlarda daha yüksek kaliteli kredi müşterilerini tespit edip onları hedefleyebileceğini gösteriyor. Bulgular ayrıca, finansal teknoloji firmasının daha az eğitimli ve kredi notu düşük olan müşteriler grubunda bile kredibilitesi yüksek bireyleri başarılı bir şekilde belirleyebildiğini ortaya koymaktadır. Bu sonuçlar, gelişmiş ülke pazarlarında yapılan, finansal teknoloji firmalarının pazar payı kazanmak için yüksek temerrüt oranlarına sahip, finansal açıdan kısıtlı müşterileri hedef aldığını gösteren, önceki literatürde bildirilen bulgularla çelişmektedir.
This thesis examines the differences in loan performance between traditional banking and financial technology borrowers in a developing market, Turkey. After the financial crisis of 2001, Turkey heavily regulated the overall lending activity through structural reforms. Unlike other emerging economies, peer-to-peer lending and marketplace for lending activities are not available for Turkish borrowers. Therefore, the development of fintech companies arises within traditional banking groups. This study relies on individual-level data on consumer loans from the fifth largest private bank in Turkey and its fintech subsidiary. Using over 5.5 million consumer loans, first of all an unprecedented increase in the share of fintech loans across all cities in Turkey between 2014-2020 is documented. Next, it is demonstrated that fintech borrowers are on average younger, better educated, have higher income, higher savings levels, pay less interest and have better credit history than traditional borrowers. In turn, we show that fintech borrowers are less likely to default even after controlling for personal characteristics such as income, savings, gender, age, education, occupation, and creditworthiness or loan characteristics such as interest rate, maturity, and loan size. Results have also been validated through analysis in subsamples of the data that have been created with propensity score matching. Results suggest that using better technology, fintech companies can identify and target higher-quality borrowers in emerging markets like Turkey. Findings also reveal that fintech firm can successfully identify creditworthy individuals even among the group of borrowers who are less educated and who have low-credit scores. These results are in contrast to the findings reported in the previous literature for developed markets where fintech firms target financially constrained borrowers with high default rates to gain market share.
This thesis examines the differences in loan performance between traditional banking and financial technology borrowers in a developing market, Turkey. After the financial crisis of 2001, Turkey heavily regulated the overall lending activity through structural reforms. Unlike other emerging economies, peer-to-peer lending and marketplace for lending activities are not available for Turkish borrowers. Therefore, the development of fintech companies arises within traditional banking groups. This study relies on individual-level data on consumer loans from the fifth largest private bank in Turkey and its fintech subsidiary. Using over 5.5 million consumer loans, first of all an unprecedented increase in the share of fintech loans across all cities in Turkey between 2014-2020 is documented. Next, it is demonstrated that fintech borrowers are on average younger, better educated, have higher income, higher savings levels, pay less interest and have better credit history than traditional borrowers. In turn, we show that fintech borrowers are less likely to default even after controlling for personal characteristics such as income, savings, gender, age, education, occupation, and creditworthiness or loan characteristics such as interest rate, maturity, and loan size. Results have also been validated through analysis in subsamples of the data that have been created with propensity score matching. Results suggest that using better technology, fintech companies can identify and target higher-quality borrowers in emerging markets like Turkey. Findings also reveal that fintech firm can successfully identify creditworthy individuals even among the group of borrowers who are less educated and who have low-credit scores. These results are in contrast to the findings reported in the previous literature for developed markets where fintech firms target financially constrained borrowers with high default rates to gain market share.
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Bankacılık, Banking ; Ekonomi
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1
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98