We examine the role of borrowers’ digital footprints in debt collection. Using a large sample of personal loans from a fintech lender in China, we find that the information acquired by the lender through borrowers’ digital footprints can increase the repayment likelihood on delinquent loans by 18.5%. The effect can be explained by two channels: bonding borrowers’ obligations with their social networks and locating borrowers’ physical locations. Moreover, the lender is more likely to approve loan applications from borrowers with digital footprints, even though these borrowers may occasionally have a higher likelihood of delinquency. The use of digital footprints can remain legitimate under stringent privacy protection regulations and fair debt collection practices. Our findings suggest that digital footprints, as a new type of collateral, can ultimately enhance financial inclusion by facilitating the lender’s collection of delinquent loans.
主讲人简介（Resume）：
Bohui Zhang is Presidential Chair Professor of Finance and Executive Associate Dean of School of Management and Economics at The Chinese University of Hong Kong, Shenzhen. He is also the director of the Center for FinTech and Social Finance, and the director of M.Sc. in Data Science at Shenzhen Finance Institute. Before joining CUHK Shenzhen, he was the professor of finance at UNSW Business School, UNSW Sydney, and the associate director of the Institute of Global Finance. He studies the role of information intermediaries on capital markets, Chinese and foreign capital markets, and Fintech. His papers have been accepted for publication in the global top-tier finance, accounting, and business journals. He has also been awarded with research grants from Australian Research Council, the Centre for International Finance and Regulation, Australian School of Business, and National Natural Science Foundation of China. He is also the Vice President of Asian Finance Association.
