FinTech Adoption and Household Risk-Taking: From Digital Payments to Platform Investments / Claire Yurong Hong, Xiaomeng Lu, Jun Pan.

Format:

Book

Author/Creator:

Hong, Claire Yurong.

Contributor:

National Bureau of Economic Research.

Lu, Xiaomeng.

Pan, Jun.

Series:

Working Paper Series (National Bureau of Economic Research) no. w28063.

NBER working paper series no. w28063

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2020.

Summary:

We study household finance in the age of FinTech, where consumption, payments, and investments take place via all-in-one super-apps. We hypothesize that FinTech adoption can improve household risk-taking by breaking down the traditional physical and psychological barriers and enhance financial inclusion. Taking advantage of an individual-level FinTech dataset, we find that higher FinTech adoption, both at the individual-level and the county-level instrumented by distance-from-Hangzhou, results in higher participation and more risk-taking in mutual-fund investments. Moreover, individuals who are otherwise more constrained, those with higher risk tolerance or living in under-banked counties, stand to benefit more from the advent of FinTech.

Notes:

Print version record

November 2020.