Accelerated Growth of Peer-to-Peer Lending and Its Impact on the Consumer Credit Market: Evidence from Lithuania

Kamilė Taujanskaitė () and Eugenijus Milčius
Additional contact information
Kamilė Taujanskaitė: Financial Engineering Department, Vilnius Gediminas Technical University, LT-10223 Vilnius, Lithuania
Eugenijus Milčius: Faculty of Mechanical Engineering and Design, Kaunas University of Technology, LT-44249 Kaunas, Lithuania

Economies, 2022, vol. 10, issue 9, 1-17

Abstract: The paper analyses development and drivers of accelerated growth of peer-to-peer (P2P) lending in Lithuania and its impact on the consumer credit market with a focus on related sustainability issues. Legislative discrepancies between the P2P and banking segments are analysed and their role in predetermining the different development trends within the segments is highlighted. The research is composed of several steps, where each step analyses a certain problem with the aim to compare the processes in both segments, and is using two different approaches based on macroeconomic data and legislative environment analysis. The applied setup of the research allows for distinguishing and quantitative evaluation of the impact on the segments caused by various internal and external factors, such as macroeconomics, technological advantages of P2P platforms, and discrepancies within business regulation. The obtained results could fill in the scientific literature gaps by providing quantitative evidence of the influence the analysed internal and external drivers have on the growth rate of the consumer credit market segments in Lithuania and how this could affect the performance of the whole market, including its sustainability. Conclusions made could be of interest to researchers and practitioners in other countries too, especially those which have similar legislation and regulations within the consumer credit market. Methods used: a scientific literature analysis and generalisation, comparative analysis, statistical data analysis, correlation–regression analysis, mathematical modelling.

Keywords: households; finance; consumer credit market; regulations; peer-to-peer platforms (P2P); commercial banks; macroeconomic indicators; modern borrowing trends (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7099/10/9/210/pdf (application/pdf)
https://www.mdpi.com/2227-7099/10/9/210/ (text/html)

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:gam:jecomi:v:10:y:2022:i:9:p:210-:d:904658

Access Statistics for this article

Economies is currently edited by Ms. Hongyan Zhang

More articles in Economies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().