The impact of technology-enabled (FinTech) lenders on bank credit is theoretically ambiguous. Banks can reduce credit if borrowing from FinTech lenders increases default risk. Alternatively, banks can provide more credit if such borrowing signals creditworthiness. I examine these possibilities...

"In the United States, the average loan a person takes out with a payday lender is around $350 for two weeks. For many with access to mainstream forms of credit, they will rarely step into a payday shop, but for the 7.7% of Americans who are totally unbanked or the 17.9% who are under-banked a...