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

Linda Allen, Yu Shan, Yao Shen

Research output: Contribution to journalArticlepeer-review


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.

Original languageEnglish (US)
JournalJournal of Financial and Quantitative Analysis
StateAccepted/In press - 2022
Externally publishedYes


  • FinTech
  • Household Finance
  • Lending
  • Mortgage
  • Natural Disasters
  • Shadow Banks

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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