In this VoxDevTalk, Silvia Prina discusses her recent work with Alfredo Burlando, and Michael Kuhn where they investigate whether the speed with which borrowers receive digital credit affects their likelihood of default.
Their research finds that longer wait times, by even a few hours, can lower the chances of default. Delaying the speed of delivery may provide individuals greater time to plan for how the loans will be used and develop a potential repayment plan. Strengthening regulation around the speed of digital credit disbursement may be one avenue to protect consumers from default and ensure higher repayment for lenders.
