Corpus ID: 9591242

The Impact of Information Technology on Consumer Lending

  title={The Impact of Information Technology on Consumer Lending},
  author={L. Einav and M. Jenkins and Jonathan Levin},
We study the adoption of automated credit scoring at a large auto …nance company and the changes it enabled in lending practices. Credit scoring appears to have increased pro…ts by roughly a thousand dollars per loan. We identify two distinct bene…ts of risk classi…cation: the ability to screen high-risk borrowers and the ability to target more generous loans to lower-risk borrowers. We show that these had e¤ects of similar magnitude. We also explore whether increased reliance on hard… Expand
12 Citations

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