DEMS Economics Seminar: Alfredo Burlando (University of Oregon)

Wednesday, November 22 at 12:00pm, Room 'Seminari Demografica' 2062, Buiding U7-2nd floor

Too Fast, Too Furious? Digital Credit Delivery Speed and Repayment Rates


The DEMS Economics Seminar series is proud to host   

Alfredo Burlando

(University of Oregon)

with M.A. Kuhn and S. Prina


Digital loans are a source of fast, short-term credit for millions of people. While digital credit broadens market access and reduces frictions, default rates are high. We study the role of the speed of delivery of digital loans on repayment. Our study uses unique administrative data from a digital lender in Mexico and a regression-discontinuity design. We show that reducing loan speed by doubling the delivery time from ten to twenty hours decreases the likelihood of default by 21%. Our findings suggest that selectively slowing down credit could improve lender profitability and help consumers avoid default.

The seminar will be in presence, Room 'Seminari Demografica' 2062, Building U7-2nd floor