1 option
Lender Automation and Racial Disparities in Credit Access / Sabrina T. Howell, Theresa Kuchler, David Snitkof, Johannes Stroebel, Jun Wong.
- Format:
- Book
- Author/Creator:
- Howell, Sabrina T.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w29364.
- NBER working paper series no. w29364
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2021.
- Summary:
- Process automation reduces racial disparities in credit access through enabling smaller loans, broadening banks' geographic reach, and removing human biases from decision-making. We document these findings in the context of the Paycheck Protection Program (PPP), a setting where private lenders faced no credit risk but decided which firms to serve. Black-owned firms primarily obtained PPP loans from automated fintech lenders, especially in areas with high racial animus. After traditional banks automated their loan processing procedures, their PPP lending to Black-owned firms increased. Our findings cannot be fully explained by racial differences in loan application behaviors, pre-existing banking relationships, firm performance, or fraud rates.
- Notes:
- Print version record
- October 2021.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.