The Federal Reserve Bank of Philadelphia published a working paper covering FinTech lending. As Jackson Mueller points out:
According to the report’s findings, Lending Club’s consumer lending activities “have penetrated areas that could benefit from additional credit supply,” including areas that lost bank branches or those areas in highly concentrated banking markets. For instance, “We find that consistently half of Lending Club’s new consumer loans are in areas where a few banks dominate the market; there is less banking competition.” In addition, “about 40 percent of Lending Club consumer loans were made in the markets that experienced at least 5 percent decline…in bank branches.”