On the Rise of FinTechs: Credit Scoring Using Digital Footprints

Journal Article (Journal Article)

We analyze the information content of a digital footprint - that is, information that users leave online simply by accessing or registering on a Web site - for predicting consumer default. We show that even simple, easily accessible variables from a digital footprint match the information content of credit bureau scores. A digital footprint complements rather than substitutes for credit bureau information and affects access to credit and reduces default rates. We discuss the implications for financial intermediaries' business models, access to credit for the unbanked, and the behavior of consumers, firms, and regulators in the digital sphere. (JEL G20, G21, G29)

Full Text

Duke Authors

Cited Authors

  • Berg, T; Burg, V; Gombović, A; Puri, M

Published Date

  • July 1, 2020

Published In

Volume / Issue

  • 33 / 7

Start / End Page

  • 2845 - 2897

Electronic International Standard Serial Number (EISSN)

  • 1465-7368

International Standard Serial Number (ISSN)

  • 0893-9454

Digital Object Identifier (DOI)

  • 10.1093/rfs/hhz099

Citation Source

  • Scopus