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Fintechs Found to Be Much More Likely to OK Suspicious PPP Loans

  • More than 40% of fintechs’ PPP loans were deemed questionable
  • Program ‘seems to have been a poor allocation of capital’

Fintechs were almost five times more likely than traditional lenders to be involved with suspicious loans issued through the U.S. government’s Paycheck Protection Program, according to a new study.

Nine of the 10 lenders with the highest rates of suspicious loans were financial-technology firms, according to the study released Tuesday by the University of Texas at Austin’s McCombs School of Business.