{ "title": "Does IT Help? Information Technology in Banking and Entrepreneurship", "publication": "IMF Working Papers, August 6, 2021", "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2021/08/06/does-it-help-information-technology-in-banking-and-entrepreneurship-462911", "canonical": "https://www.imf.org/en/publications/wp/issues/2021/08/06/does-it-help-information-technology-in-banking-and-entrepreneurship-462911", "overlayPath": "/en/publications/wp/issues/2021/08/06/does-it-help-information-technology-in-banking-and-entrepreneurship-462911/index.md", "summary": "This paper analyzes the importance of information technology (IT) in banking for entrepreneurship. To guide our empirical analysis, we build a parsimonious model of bank screening and lending that predicts that IT in banking can spur entrepreneurship by making it easier for startups to borrow agains", "sections": [ { "heading": "Authors and publication", "content": "- By Toni Ahnert, Sebastian Doerr, Nicola Pierri, Yannick Timmer\n- August 6, 2021\n- IMF Working Papers, Working Paper No. 2021/214\n- Pages: 57\n- Volume: 2021\n- Issue: 214\n- DOI: https://doi.org/10.5089/9781513591803.001\n- Stock No: WPIEA2021214\n- ISBN: 9781513591803\n- ISSN: 1018-5941" }, { "heading": "Research question and theoretical framework", "content": "- Examines the importance of information technology (IT) in banking for entrepreneurship.\n- Builds a parsimonious model of bank screening and lending that predicts:\n - IT in banking can spur entrepreneurship by making it easier for startups to borrow against collateral." }, { "heading": "Empirical strategy and key empirical findings", "content": "- Empirical setting: U.S. counties with differential exposure to IT-intensive banks.\n- Main empirical findings:\n - Job creation by young firms is stronger in U.S. counties that are more exposed to IT-intensive banks.\n - Entrepreneurship increases more in IT-exposed counties when house prices rise, consistent with a strengthened collateral lending channel for IT banks.\n - IT in banking increases startup activity without diminishing startup quality.\n - IT in banking weakens the importance of geographical distance between borrowers and lenders." }, { "heading": "Interpretation and implications", "content": "- Results suggest that banks' IT adoption can increase dynamism and productivity by:\n - Facilitating collateral-based lending to startups.\n - Expanding access to credit for geographically distant borrowers.\n - Supporting job creation by young firms without reducing startup quality." }, { "heading": "Subject areas and keywords", "content": "- Subject: Collateral, Employment, Financial institutions, Job creation, Labor, Self-employment, Technology\n- Keywords: bank screening, banks' IT adoption, collateral, Collateral, Employment, entrepreneurship, importance of information technology, information technology, IT in banking, Job creation, screening, Self-employment, startup activity, technology in banking\n\nSource: IMF Working Paper \"Does IT Help? Information Technology in Banking and Entrepreneurship\" (August 6, 2021).\n\n---\n\n Content in this bundle\n\n- Working Paper\n - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2021/08/06/does-it-help-information-technology-in-banking-and-entrepreneurship-462911" } ], "bullets": [ "[Markdown version](/en/publications/wp/issues/2021/08/06/does-it-help-information-technology-in-banking-and-entrepreneurship-462911/index.md)", "[Structured JSON version](/en/publications/wp/issues/2021/08/06/does-it-help-information-technology-in-banking-and-entrepreneurship-462911/index.json)", "[Bundle manifest](/en/publications/wp/issues/2021/08/06/does-it-help-information-technology-in-banking-and-entrepreneurship-462911/bundle-manifest.json)", "Authors: Toni Ahnert, Sebastian Doerr, Nicola Pierri, Yannick Timmer", "Published: August 6, 2021", "Series: IMF Working Papers", "DOI: https://doi.org/10.5089/9781513591803.001", "By Toni Ahnert, Sebastian Doerr, Nicola Pierri, Yannick Timmer", "August 6, 2021", "IMF Working Papers, Working Paper No. 2021/214", "Pages: 57", "Volume: 2021", "Issue: 214", "DOI: https://doi.org/10.5089/9781513591803.001", "Stock No: WPIEA2021214", "ISBN: 9781513591803", "ISSN: 1018-5941", "Examines the importance of information technology (IT) in banking for entrepreneurship.", "Builds a parsimonious model of bank screening and lending that predicts:", "Empirical setting: U.S. counties with differential exposure to IT-intensive banks.", "Main empirical findings:", "Results suggest that banks' IT adoption can increase dynamism and productivity by:", "Subject: Collateral, Employment, Financial institutions, Job creation, Labor, Self-employment, Technology", "Keywords: bank screening, banks' IT adoption, collateral, Collateral, Employment, entrepreneurship, importance of information technology, information technology, IT in banking, Job creation, screening, Self-employment, startup activity, technology in banking", "**Working Paper**" ], "related": [ { "title": "Working Paper", "role": "paper", "sourceUrl": "https://www.imf.org/-/media/files/publications/wp/2021/english/wpiea2021214-print-pdf.pdf", "summary": { "path": "/-/media/files/publications/wp/2021/english/wpiea2021214-print-pdf.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/wp/2021/english/wpiea2021214-print-pdf.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/wp/issues/2021/08/06/does-it-help-information-technology-in-banking-and-entrepreneurship-462911/index.md", "json": "/en/publications/wp/issues/2021/08/06/does-it-help-information-technology-in-banking-and-entrepreneurship-462911/index.json", "bundleManifest": "/en/publications/wp/issues/2021/08/06/does-it-help-information-technology-in-banking-and-entrepreneurship-462911/bundle-manifest.json" }, "generatedAtUtc": "2026-09-16T20:00:56.804Z" }