Lending activity efficiency. A comparison between fintech firms and the banking sector

The FinTech phenomenon is undoubtedly increasingly changing the morphology of the global financial system, as well as the existing competitive levers in particular sectors, including lending. The aim of this study is to offer a comparative analysis of the level of efficiency exhibited by FinTech firms operating in this sector with that of banks, which have traditionally carried out this activity. We measure efficiency levels by implementing the Stochastic Data Envelopment Analysis (SDEA). The study, referred to 2021, analyses a data set composed of all the Italian FinTech firms engaged in the lending business and all the Italian banks. We find higher efficiency levels for banks compared to FinTech firms. The results are certainly interesting both at corporate level and for regulatory purposes.

Automated summary

This study compares the efficiency levels of FinTech firms and traditional banks in the lending sector and finds that banks tend to be more efficient. The results are significant for both corporate and regulatory purposes.