This paper uses data from a crowdfunding platform to study the impact of open banking policy on Fintech lending. The results from diff-in-diff regressions show that open banking increases financial inclusion, allowing the platform to extend credit to riskier firms with lower credit scores and higher default expense of the screening ability of the platform. Following the implementation of open banking, marginal borrowers gain access to credit, but all borrowers suffer from worse credit terms: they face higher interest rates and access to lower loan amounts.
