What Drives the Expansion of the Peer-to-Peer Lending?

Havrylchyk, Olena; Mariotto, Carlotta; Rahim, Talal-Ur; Verdier, Marianne

doi:10.2139/ssrn.2841316

Cited by 17 publications

(21 citation statements)

References 44 publications

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“…P2P lending has achieved success in economies lacking banking access. This accords with the Havrylchyk et al (2019) finding that access is essential to P2P lending. Financial institution efficiency enters positively and significantly in column [2], implying that efficiency measures such as the quality of the financial institution are important for the expansion of P2P lending.…”

Section: Empirical Findingssupporting

confidence: 89%

“…According to BIS and FSB (2017), technological advances in the internet are among the supply factors driving fintech adoption. Although Rau (2019) and Havrylchyk et al (2019) found no robust impact of the internet on P2P lending, our results confirm that internet penetration is an important driver for the expansion of P2P lending. In addition, the findings show that the level of new business density is positively related to the volume of P2P lending.…”

contrasting

confidence: 55%

“…Jagtiani and Lemieux (2018) document that Lending Club-a California-based P2P lending platform-provides credit in countries where credit card loans are more concentrated and areas that have fewer bank branches per capita. Havrylchyk et al (2019) examine the expansion of P2P lending using data from Lending Club and Prosper Market Place, another P2P lender. They find that P2P lending is negatively related to market concentration and the number of bank branches.…”

mentioning

confidence: 99%

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Determinants of Peer-to-Peer Lending Expansion: The Roles of Financial Development and Financial Literacy

Oh¹,

Rosenkranz²

2020

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The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term "country" in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

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Section: Empirical Findingssupporting

confidence: 89%

contrasting

confidence: 55%

mentioning

confidence: 99%

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Determinants of Peer-to-Peer Lending Expansion: The Roles of Financial Development and Financial Literacy

Oh¹,

Rosenkranz²

2020

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“…For example, some fintech lenders can identify whether the loan applications are submitted from a high-crime area or in an area where factories are being shut down or relocated. Previous studies have found evidence that local economic information could serve as a possible relevant source of nontraditional information by fintech lenders (Alyakoob, Rahman, & Wei, 2017;Bertsch, Hull, & Zhang, 2016;Buchak, Matvos, Piskorski, & Seru, 2017;Chen, Hanson, & Stein, 2017;Crowe & Ramcharan, 2013;Havrylchyk, Mariotto, Rahim, & Verdier, 2018;Jagtiani & Lemieux, 2018).…”

Section: The Literaturementioning

confidence: 99%

The roles of alternative data and machine learning in fintech lending: Evidence from the LendingClub consumer platform

Jagtiani

Lemieux

2019

Financial Management

216

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There have been concerns about the use of alternative data sources by fintech lenders. We compare loans made by LendingClub and similar loans that were originated by banks. The correlations between the rating grades (assigned by LendingClub) and the borrowers’ FICO scores declined from about 80% (for loans originated in 2007) to about 35% for recent vintages (originated in 2014–2015), indicating that nontraditional data (not already accounted for in the FICO scores) have been increasingly used by fintech lenders. The rating grades perform well in predicting loan default. The use of alternative data has allowed some borrowers who would have been classified as subprime by traditional criteria to be slotted into “better” loan grades, allowing them to obtain lower priced credit.

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“…An interesting study into financial inclusion is Havrylchyk et al (2017). The paper explores three of their hypothesis about the expansion of P2P lending which includes 1) global financial crisis, 2) nature of banking in regards to barriers to entry, 3) switching costs.…”

Section: Loan-based Crowdfundingmentioning

confidence: 99%

Fintech and the Future of Financial Services: What Are the Research Gaps?

Kavuri¹,

Milne²

2019

SSRN Journal

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New financial technologies (FinTech) have erupted around the world. Consequently, there has been a considerable increase in academic literature on FinTech over the last five years. Research tends to be scantily connected with no coherent research agenda. Significant research gaps and important questions remain. There is much work to be done before this area becomes an established academic discipline. This paper offers coherent research themes formulated through focus group meetings with policymakers and academics, and also based on a critical assessment of the literature. We outline seven key research gaps with questions that could form the basis of academic study. If these are addressed it would help this area become an established academic discipline. AbstractNew financial technologies (FinTech) have erupted around the world.Consequently, there has been a considerable increase in academic literature on FinTech over the last five years. Research tends to be scantily connected with no coherent research agenda. Significant research gaps and important questions remain. There is much work to be done before this area becomes an established academic discipline. This paper offers coherent research themes formulated through focus group meetings with policymakers and academics, and also based on a critical assessment of the literature. We outline seven key research gaps with questions that could form the basis of academic study. If these are addressed it would help this area become an established academic discipline.

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What Drives the Expansion of the Peer-to-Peer Lending?

Cited by 17 publications

References 44 publications

Determinants of Peer-to-Peer Lending Expansion: The Roles of Financial Development and Financial Literacy

Determinants of Peer-to-Peer Lending Expansion: The Roles of Financial Development and Financial Literacy

The roles of alternative data and machine learning in fintech lending: Evidence from the LendingClub consumer platform

Fintech and the Future of Financial Services: What Are the Research Gaps?

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