Date of Completion
Spring 5-1-2025
Thesis Advisor(s)
Alexander Amati; Liping Qiu
Honors Major
Finance
Disciplines
Finance and Financial Management | Real Estate
Abstract
This research examines the performance of financial technology (fintech) lending companies, compared to traditional lenders, to assess whether a competitive advantage exists during periods of rising interest rates. A meta-analysis is conducted, linking historical lending behavior of banks and fintech lenders in relation to interest rate movements. Analysis of loan performance during the period 2013-2024 indicates that fintech lending does not reveal a significant advantage on a risk-adjusted basis during interest rate hikes. However, there is anecdotal evidence suggesting that the largest peer-to-peer lending platform experienced enhanced lending efficiency during a period of low interest rates. Overall, evidence suggests that non-traditional lenders exhibit greater risk-seeking behavior in such environments.
Recommended Citation
Terry, Jordan, "Fintech Companies vs Traditional Lenders: Who Performed Better during Recent Rate Hikes?" (2025). Honors Scholar Theses. 1092.
https://digitalcommons.lib.uconn.edu/srhonors_theses/1092