Mobile internet, collateral and banking

Angelo D'Andrea (), Patrick Hitayezu (), Kangni Kpodar, Nicola Limodio and Andrea F. Presbitero ()
Additional contact information
Angelo D'Andrea: Bank of Italy
Patrick Hitayezu: Research Hub
Andrea F. Presbitero: International Monetary Fund and CEPR

No 1454, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: Combining administrative data on credit, internet penetration and a land reform in Rwanda, this paper shows that the complementarity between technology and law can overcome financial frictions. Leveraging quasi-experimental variation in 3G availability from lightning strikes and incidental coverage, we show that mobile connectivity steers borrowers from microfinance to commercial banks and improves loan terms. These effects are partly due to the role of 3G internet in helping borrowers obtain information on land titles, used as a collateral for bank loans and mortgages. We quantify that the availability of collateral mediates 35% of the overall effect of mobile internet on credit and 80% on collateralized loans.

Keywords: banks; credit; high-speed internet; mobile; technological change (search for similar items in EconPapers)
JEL-codes: G21 G23 O33 (search for similar items in EconPapers)
Date: 2024-06
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bancaditalia.it/pubblicazioni/temi-dis ... 454/en_tema_1454.pdf (application/pdf)

Related works:
Working Paper: Mobile Internet, Collateral, and Banking (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1454_24

Access Statistics for this paper

More papers in Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().