Research Master Pre-Defense
Heterogeneous reporting cost and Fintech entry under costly information acquistion
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SeriesResearch Master Defense
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Speaker
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Date and time
June 24, 2026
11:30 - 13:30
This paper proposes a mechanism by which mandatory reporting regulation such as Customer Due Diligence (CDD) structurally distort bank credit supply away from informationally nonstandardized borrowers. Fintech entry can accommodate this share of rationed borrowers through a lack of compliance requirement, though this comes at a cost of higher rates and worse detection. The competitive rate advantace of fintechs increases in base rates and reporting requirements.