Online Peer-to-Peer Lending – A Literature Review

Alexander Bachmann () and Burkhardt Funk ()
Additional contact information
Alexander Bachmann: Leuphana University
Burkhardt Funk: Leuphana University

Journal of Internet Banking and Commerce, 2011, vol. 16, issue 2, 01-18

Abstract: The term online peer-to-peer lending (P2P) describes the loan origination process between private individuals on online platforms were financial institutions operate only as intermediates required by law. Initialized by groups in online social networks, first commercial online P2P lending platforms started in 2005. Thus online P2P lending is a relatively young research field. This paper gives a brief overview of the P2P lending market and reviews the research on the determinants of P2P lending. We distinguish between financial and demographic characteristics of the borrower, as well as social characteristics like friends and group affiliation. The reviewed literature gives insights on how the determinants affect the borrowers’ likelihood of successful funding, the final interest rate that has to be paid as well as the relationship of the borrowers’ characteristics and lending success.

Keywords: Peer-to-Peer Lending; Literature Review; Determinants of Funding Success; Financial Characteristics; Demographic Characteristics; Group Intermediation (search for similar items in EconPapers)
JEL-codes: F34 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:joibac:0391

Access Statistics for this article

Journal of Internet Banking and Commerce is currently edited by Vijaya Lakshmi, Nahum Goldmann and Dale Pinto

More articles in Journal of Internet Banking and Commerce
Bibliographic data for series maintained by Dale Pinto ().