competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition … collateralization in a model where banks do not have this superior screening skill. In particular, we study the effect of bank … will intensify if both banks collateralize. Moreover, bank competition is welfare improving if collateralization is rather …

competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition … collateralization in a model where banks do not have this superior screening skill. In particular, we study the effect of bank … will intensify if both banks collateralize. Moreover, bank competition is welfare improving if collateralization is rather …

, we show that fintech loans to entrepreneurs are more likely to be unsecured and short-term while bank loans are expected … to be asset-backed and long-term. The findings suggest that fintech lenders substitute data for collateral to leverage … their advantage in borrower screening. Nevertheless, as this advantage declines with loan's term, banks are able to leverage …