FinTech Adoption and Household Risk-Taking: From Digital Payments to Platform Investments

56 Pages Posted: 30 Oct 2020 Last revised: 12 Dec 2022

See all articles by Claire Yurong Hong

Claire Yurong Hong

Shanghai Jiao Tong University (SJTU) - Shanghai Advanced Institute of Finance (SAIF)

Xiaomeng Lu

Fudan University, Fanhai International School of Finance

Jun Pan

Shanghai Jiao Tong University (SJTU) - Shanghai Advanced Institute of Finance (SAIF); National Bureau of Economic Research (NBER); China Academy of Financial Research (CAFR)

Multiple version iconThere are 3 versions of this paper

Date Written: September 30, 2021

Abstract

We study household finance in the age of FinTech, where consumption, payments, and investments take place via all-in-one super-apps. We hypothesize that FinTech adoption can improve household risk-taking by breaking down the traditional physical and psychological barriers and enhance financial inclusion. Taking advantage of an individual-level FinTech dataset, we find that higher FinTech adoption, both at the individual-level and the county-level instrumented by distance-from-Hangzhou, results in higher participation and more risk-taking in mutual-fund investments. Moreover, individuals who are otherwise more constrained, those with higher risk tolerance or living in under-banked counties, stand to benefit more from the advent of FinTech.

Keywords: FinTech, Digital Payment, Financial Inclusion, Consumption, Risk Taking, Household Finance

JEL Classification: G11, G50

Suggested Citation

Hong, Claire Yurong and Lu, Xiaomeng and Pan, Jun, FinTech Adoption and Household Risk-Taking: From Digital Payments to Platform Investments (September 30, 2021). Available at SSRN: https://ssrn.com/abstract=3706709 or http://dx.doi.org/10.2139/ssrn.3706709

Claire Yurong Hong

Shanghai Jiao Tong University (SJTU) - Shanghai Advanced Institute of Finance (SAIF) ( email )

211 West Huaihai Road
Shanghai, China
Shanghai, Shanghai 200030
China

HOME PAGE: http://https://sites.google.com/site/claireyuronghong/

Xiaomeng Lu (Contact Author)

Fudan University, Fanhai International School of Finance ( email )

220 Handan Road
Shanghai, 100045
China

Jun Pan

Shanghai Jiao Tong University (SJTU) - Shanghai Advanced Institute of Finance (SAIF) ( email )

Shanghai Jiao Tong University
211 West Huaihai Road
Shanghai, 200030
China

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

China Academy of Financial Research (CAFR)

1954 Huashan Road
Shanghai P.R.China, 200030
China

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