Fintech business and firm access to bank loans

Firms have widely participated in financial technology (Fintech) in recent years. Through a proprietary dataset of listed firms on the Shanghai and Shenzhen Stock Exchanges, we find that Fintech positively contributes to firm access to bank loans, and such link is stronger among private firms, non‐manufacturing firms or those in regions of better marketisation. Further tests suggest that enhanced trust underlies our primary findings, and that Fintech also positively contributes to loans without collateral, longer maturity and lower costs. In addition, Fintech may effectively curb firm's overinvestment. Our findings may have policy implications for firm investment behaviour and financing activities.