The 40th Xi Xian Forum, co-hosted by IIDPF and the School of Public Finance and Taxation, was successfully held on 1 July 2023 in Room 119 of Wenqin Building. Vincent Yao, Professor of Georgia State University, delivered a keynote speech entitled "FinTech Lending with LowTech Pricing" as the guest speaker of this academic luncheon. The forum was hosted by Professor Lu Yuanping, Executive Director of IIDPF, and attended by more than 20 faculty members and students, including Professor Zhang Kezhong, Dean of the School of Public Finance and Taxation, Professor Wan Qian and Professor Zou Wei.
Fintech lenders are known for using big data and advanced statistical techniques to screen borrowers and price loans compared to traditional financial institutions' lending operations. It is expected that the emergence of these new types of lenders will lead to a shift in the way loan interest rates are priced.Professor Yao's article, after analysing 2.3 million unsecured personal loan operations offered by fintech platforms, found that the borrower's FICO score is still the determining factor in pricing, i.e., loan interest rates are still heavily reliant on traditional credit scores. Professor Yao's findings suggest that the traditional lending market's lag still exists in the digital age. While current credit scoring systems do not provide a comprehensive picture of default risk, it is difficult for even experienced lenders to implement a truly risk-based approach to interest rate pricing using big data and advanced technology.
Professor Yao gave a wonderful speech to the faculty and students in the audience and at the same time triggered in-depth thinking about the lending business of fintech companies. In the discussion session, the participating professors exchanged views and discussed related issues. Students also spoke enthusiastically and interacted with each other around the research background and future research direction, etc. Professor Yao's sharing promoted the communication and interaction of academic views between teachers and students, and created a strong atmosphere of academic research.