Speaker: Wu Peng, Lecturer (School of Economics, Zhejiang University of Finance and Economics)

Host: Lan Lan, Assistant Professor (Li Anmin Institute of Economics, Liaoning University)

Guest Introduction: Cheng Shiyu, Assistant Professor (Li Anmin Institute of Economics, Liaoning University)

Time: December 12, 2025 (Friday) 10:00-11:30 (Beijing Time)

Venue: First-floor Conference Room, Wuzhou Garden, Chongshan Campus, Liaoning University

Online Access: Tencent Meeting ID 730-281-8924

Language: Chinese/English

Abstract:

We analyze fintech’s pricing power using a sample of small business loans granted by a leading fintech platform and incumbent banks in China. We first show that the fintech lender charges significantly higher interest rates than banks, a result consistent with prior studies. However, we find that this interest rate premium cannot be explained by fintech’s exposure to inherently riskier borrowers or by borrowers’ urgent liquidity needs. To uncover the underlying mechanism, we exploit the fintech lender’s Dashanque (DSQ) program, which integrates satellite remote sensing and AI into rural credit assessments to enrich fintech’s alternative-data set. Strikingly, enriching alternative data and information set further widens the fintech premium, especially so for agricultural firms. However, the delinquency rate of fintech borrowers does not rise compared to bank borrowers. Further test reveals that the incremental premium is driven by increased interest rates charged on larger and high‐sales borrowers, consistent with the fintech lender using superior data to identify low‐elasticity clients and extract additional surplus. Our findings provide novel evidence of data-driven price discrimination in fintech lending.

Speaker Profile:

Wu Peng holds a Ph.D. in Economics from Zhejiang University and serves as a lecturer at the School of Economics, Zhejiang University of Finance and Economics. He is also appointed as the Deputy Director of the Talent Development Office of the Party Committee at Zhejiang University of Finance and Economics, a council member of the China Information Economics Society, and a part-time researcher at the China Academy of Digital Trade, Zhejiang University. His research focuses on the digital economy and digital trade. His work has been accepted or published in leading domestic and international journals, including Economics (Quarterly), The World Economy, China Industrial Economics, Finance & Trade Economics, The World Economy, International Review of Economics and Finance, and Structural Change and Economic Dynamics, among others. He has also led a National Social Science Foundation Youth Project.