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Do FinTech Mortgage Lenders Fill the Credit Gap? Evidence from Natural Disasters

Author

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  • Allen, Linda
  • Shan, Yu
  • Shen, Yao

Abstract

After exogenous demand shocks caused by natural disasters, FinTech lenders are more responsive to increased demand for reconstruction mortgages than traditional banks and non-FinTech shadow banks. Both FinTech and traditional banks increase credit supply, but FinTech supply is more elastic without increases in risk-adjusted interest rates or delinquency rates. Comparing lending supply channels, banks respond to regulatory incentives to lend to damaged areas, whereas FinTech lenders supply more credit when traditional banks rely more on balance sheet financing and physical branch networks. Compared to traditional banks, FinTech lenders increase supply elasticity more aggressively in response to local competitive pressure.

Suggested Citation

  • Allen, Linda & Shan, Yu & Shen, Yao, 2023. "Do FinTech Mortgage Lenders Fill the Credit Gap? Evidence from Natural Disasters," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 58(8), pages 3342-3383, December.
    • Handle: RePEc:cup:jfinqa:v:58:y:2023:i:8:p:3342-3383_5
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    Citations

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    Cited by:

    1. Meijing Xie & Hengshan Deng, 2025. "FinTech and Traditional Banking Performance in China," SAGE Open, , vol. 15(4), pages 21582440251, November.
    2. Padagnassou Simda & Gregory Gimpel, 2025. "Managing regulatory risks of small bank—fintech collaborations," Journal of Banking Regulation, Palgrave Macmillan, vol. 26(4), pages 827-839, December.
    3. Justin Contat & Carrie Hopkins & Luis Mejia & Matthew Suandi, 2024. "When climate meets real estate: A survey of the literature," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 52(3), pages 618-659, May.
    4. Trinh, Hai Hong & Tran, Thao Phuong, 2024. "Global banking systems, financial stability, and uncertainty: How have countries coped with geopolitical risks?," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    5. Yangyang Sun & Hanqin Wang & Chunxia Zhu & Dongmei Wang, 2025. "Fintech empowerment and the new-quality productivity of enterprises: empirical evidence from Chinese listed companies," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.
    6. Ryan, Alexander, 2025. "Financial Risks in Flooding: Bank Response to Climate-Induced Natural Disasters," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360730, Agricultural and Applied Economics Association.
    7. Lin, Zhilu & Liu, Shiang & Wu, Wentao & Zhao, Yang, 2025. "The impact of FinTech on mortgage accessibility for same-sex borrowers," Economics Letters, Elsevier, vol. 257(C).
    8. Fengqin Freya Chen & Walid Saffar & Longfei Shang, 2025. "Local Agglomeration and Household Mortgage Debt," Management Science, INFORMS, vol. 71(6), pages 5001-5021, June.
    9. Wang, Qi & Liu, Ming & Xie, Kai, 2025. "Disappearing bank Branches: Evidence from China household finance survey," International Review of Economics & Finance, Elsevier, vol. 98(C).
    10. Cavoli, Tony & Khan, Isma & Wali Ullah, G.M., 2025. "Social capital and FinTech lending: international evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 105(C).

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