WEBINAR on Peer-to-peer FinTech Lending, Non-traditional Information, and Racial Discrimination
This one-hour webinar will present recent academic research that has been funded by CPA Ontario and the Schulich CPA Ontario Centre in Digital Financial Information.
Overview
We hypothesize that racial discrimination can exist in peer-to-peer (P2P) lending and that the degree of racial discrimination decreases in the precision of credit quality signals generated from both traditional and non-traditional information. Using a large sample of loan listings from a sizeable P2P lender in the U.S., we find strong evidence that loan listings in counties with more minority population are associated with higher lending rates and higher loan denial rates. Employing path analysis, we find that racial information is transmitted through the P2P platform’s internal rating algorithms that utilize non-traditional information and the decision-making of platform investors.
While being a largely "academic research"-focused presentation, CPA practitioners should be interested in the cutting-edge insights from this accounting research. Webinar participants will receive an official verified confirmation of participation after the webinar that can be used toward CPA professional development requirements.
Overview
We hypothesize that racial discrimination can exist in peer-to-peer (P2P) lending and that the degree of racial discrimination decreases in the precision of credit quality signals generated from both traditional and non-traditional information. Using a large sample of loan listings from a sizeable P2P lender in the U.S., we find strong evidence that loan listings in counties with more minority population are associated with higher lending rates and higher loan denial rates. Employing path analysis, we find that racial information is transmitted through the P2P platform’s internal rating algorithms that utilize non-traditional information and the decision-making of platform investors.
While being a largely "academic research"-focused presentation, CPA practitioners should be interested in the cutting-edge insights from this accounting research. Webinar participants will receive an official verified confirmation of participation after the webinar that can be used toward CPA professional development requirements.
