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DESCRIPTION;ENCODING=QUOTED-PRINTABLE:Claire Yurong Hong (Shanghai Jiao Tong University) - FinTech Adoption and Household Risk-Taking =0D=0A Co-authores: Xiaomeng Lu (Shanghai Jiao Tong University) and Jun Pan (Shanghai Jiao Tong University and CAFR) =0D=0A Abstract This paper examines how FinTech can lower investment barriers and help households move toward optimal risk-taking, using a unique account-level data on consumption, investments, and FinTech usage from Ant Group. During our sample period, China experienced a rapid increase in FinTech penetration in the form of offline digital payment, and our measure of FinTech adoption is constructed relative to this fast-developing trend of new technology. Taking advantage of our consumption data, we further infer individuals' risk tolerance from their consumption volatility. We find that, while FinTech adoption improves risk-taking for all, the more risk-tolerant individuals benefit more from FinTech advancement. The magnitude of FinTech improvement is further quantified relative to the optimal alignment of risk-taking and consumption prescribed by Merton (1971). Aggregating to the city-level, we find significant variations in FinTech adoption across cities in China, owing to the gradual spread of the new technology from Hangzhou to inner China. Examining the enhancement in risk-taking across geographical locations, we find that cities with low financial-service coverage benefit the most from FinTech penetration. Overall, our results show that, by unshackling the traditional constraints, FinTech improves risk-taking for individuals who need it the most.=0D=0A Online BOFIT seminars are open to all researchers interested in the subjects covered. Those wishing to attend a seminar are kindly asked to register in advance, by filling in the Online Registration Form =0D=0A The registration for each seminar is open until 9:00 am the day of the seminar. You will receive a link to join the seminar by email at the latest one hour before the seminar is scheduled to begin. =0D=0A
DTEND:20210824T082500Z
DTSTAMP:20210616T051141Z
DTSTART:20210824T073000Z
LOCATION:Teams Meeting
SUMMARY:Claire Yurong Hong (Shanghai Jiao Tong University) - FinTech Adoption and Household Risk-Taking
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