Biography

António Martins is affiliate Professor of Finance at Católica Lisbon School of Business & Economics. António holds a PhD in Economics from the Lisbon School of Economics and Management (ISEG) and his research interests include International Economics, International Finance, Firm Performance, and Consumer Finance.
António has joint work with UMinho, namely with professor Miguel Portela, since 2020.

Abstract

We study online informal lending among anonymous individuals conducted without contracts, collateral, or legal enforcement. Using data on requests, funding, performance, and matched surveys, we show that pseudonymous identities build trust through repeat borrowing and reputation through verified repayment. Higher prices substitute credit history for first-time borrowers, increasing the chances of funding. Within funded loans, we observe a positive price-default gradient. Overlap in borrowers’ and lenders’ online activity predicts both funding and repayment, suggesting that shared culture substitutes for geographic or social proximity. Connectedness matters for ex-ante screening rather than ex-post monitoring. This market intermediates millions, and profits concentrate among few lenders.

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