Are FinTech lending apps harmful? Evidence from user experience in the Indian market

Akbar Ali, Vijaya B. Marisetty*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

2 Citations (Scopus)

Abstract

Lower regulatory hurdles and ease of penetration has made FinTech lending grow rapidly across the world. Using around 2.19 million reviews from users of FinTech loan applications registered in Google Play Store in India, we investigate users' experience on FinTech lending. Our text analytics-based results indicate that around 20 percent of the negative experience is associated with fraud. FinTech lending firms that emerged during the COVID crisis are perceived more fraudulent compared to pre-COVID firms, highlighting FinTech lenders’ exploitation when borrowers are more vulnerable. The results are robust for fake reviews. Our study suggests that regulators should be wary of rapidly growing FinTech lending market.

Original languageEnglish
Article number101269
JournalBritish Accounting Review
DOIs
Publication statusE-pub ahead of print/First online - 28 Oct 2023

Keywords

  • n/a OA procedure
  • FinTech
  • FinTech loan applications
  • Fraud
  • Text analytics
  • COVID

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