This project studies the uses of financial technology (fintech) on corporate finance and household investment behaviour. For corporate finance, expanding access to small riskier firms can stimulate economic growth and innovation. However, there are also more information asymmetry. For household investment behaviour, fintech has the potential to increase financial market participation and improve risk-sharing through access to cheaper information and financial services. However, it can also be used by companies to exploit individual behavioural biases. Using a combination of observational as well as experimental data, I study the impact of fintech on existing market participants and new entrants.

There are three main questions in this area. First, what role do alternative lenders play in the financial system in terms of the allocation of credit, amount, and quality of entrepreneurship in the economy? Second, how does access to data and high-frequency financial affect well-documented behavioural biases in terms of consumption, savings, and investments? On the one hand, more information access should improve the quality of decision-making along various dimensions. On the other hand, having a high throughput of information may also exacerbate overreactions to news. Finally, what is the role and impact of financial regulation on the functioning of lending and equity markets?

As fintech solutions burgeon in various settings in the financial services industry, understanding the impact of such developments on the functioning of the financial markets becomes increasingly important to avoid market failures, anti-competitive effects, and privacy issues.