No. 1511 - Birds of a feather flock together: the coupling of innovative banks and innovative firms

Temi di discussione (Working papers)
by Silvia Del Prete, Stefano Schiaffi and Giovanni Soggia
December 2025
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Banks can invest in Fintech projects to enhance their ability to assess customers' creditworthiness. This paper examines the effect of such investments on credit provision to firms, with a particular focus on younger and more innovative businesses. The analysis is based on Credit Register data and on information about banks' financial innovation from the Regional Bank Lending Survey (RBLS). Innovative firms are identified using the special section of the Business Register introduced by the 2012 Italian Start-up Act.

Banks that invest in Fintech projects aimed at improving customer assessment provide their existing innovative borrowers with more credit and at lower interest rates than other intermediaries. These Fintech investments are associated with longer and more stable lending relationships, without any significant increase in the likelihood of credit quality deterioration.

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  1. 22 December 2025
    No. 1511 - Birds of a feather flock together: the coupling of innovative banks and innovative firms
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