Wells Fargo Scandal Drove Borrowers to Fintech Lenders, Study Suggests

Wells Fargo scandal drove borrowers to fintech lenders, study suggests

The Wells Fargo financial scandal in 2016 diminished consumer trust in traditional banks while driving homebuyers to fintech lenders for mortgages, a University of California, Davis study suggests.

Wells Fargo Scandal Pushed Customers Toward Fintech, Says UC Davis Study

BrianFagioli shares a report from NERDS.xyz: A new academic study has found that the 2016 Wells Fargo scandal pushed many consumers toward fintech lenders instead of traditional banks. The research, published in the Journal of Financial Economics, suggests that it was a lack of trust rather than in...

Wells Fargo Scandal Drove Borrowers to Fintech Lenders, UC Davis Study Suggests

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Study Finds Wells Fargo Scandal Pushed Borrowers Toward Fintech Lenders

In 2016, the Wells Fargo financial scandal exposed deep-rooted issues within traditional banking institutions, leading to a significant erosion of public trust. This erosion did not merely tarnish Wells Fargo’s reputation; it reverberated across the entire banking sector, changing the landscape of mortgage lending. A groundbreaking study conducted by Professor Keer Yang of the University of California, Davis, offers compelling evidence that this…