We build a financial intermediation model wherein bank and fintech intermediaries differ in their enforcement …, and (iii) bank-fintech partnerships. Fintech disruption enhances market competition and facilitates credit intermediation … to previously underserved borrowers, but crowds out bank-captive borrowers as banks experience low profitability and get …

We compare the performance of unsecured personal installment loans made by traditional bank lenders with that of … statistical noise. In 2013 and 2016, the largest bank lenders experienced the highest ratio of nonperformance, the highest … inherent credit risk, rather than by lending inefficiency. LendingClub’s performance was similar to small bank lenders as of …

Using 2013 and 2016 data, we compare the performance of unsecured consumer loans made by U.S. bank holding companies to … ratio, adjusted for statistical noise, and the minimum ratio gauges lending inefficiency. In 2013 and 2016, the largest bank … similar to the high average efficiency of the largest bank lenders - a conclusion that may not be applicable to other fintech …