Lending Business Models and FinTechs Efficiency

Francesca Pampurini*, Annagiulia Pezzola, Anna Grazia Quaranta

*Corresponding author

Research output: Contribution to journalArticle

Abstract

The aim of the study is to analyse which managerial issues can be considered the main efficiency drivers for all Italian FinTechs engaged in lending. We measure their efficiency in the period 2020-2022 via Stochastic Data Envelopment Analysis. The main determinants seem to be ROA and cost-to-income ratio; this means that the ability to control both the business risk level and costs is crucial for FinTechs’ managers and other players interested in M&A deals in this industry. The results are useful for FinTechs, other financial players, regulators and supervisors in defining homogeneous rules in the lending sector.
Original languageEnglish
Pages (from-to)1-8
Number of pages8
JournalFinance Research Letters
DOIs
Publication statusPublished - 2024

Keywords

  • Efficiency
  • FinTech
  • Lending business models
  • Stochastic Data Envelopment Analysis

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