Using a theoretical model that assumes heterogeneity in lenders' screening ability and in borrowers' investment horizon, we show that fintech loans to entrepreneurs are more likely to be unsecured and short-term while bank loans are expected to be asset-backed and long-term. The findings suggest...

E-commerce and FinTech are currently booming in China. The growing consumer market is accompanied by internet finance, by which consumers can easily borrow money from financial institutions online. As a result, the growing risks of financial institutions are of concern to the government and...