Online Peer-to-Peer Lending: A Literature Review

Alexander Bachmann; Alexander Becker; Daniel Bürckner; Michel Hilker; Frank Kock; Mark Lehmann; Phillip Tiburtius; Burkhardt Funk

Online Peer-to-Peer Lending: A Literature Review

Alexander Bachmann
, Alexander Becker
, Daniel Bürckner
, Michel Hilker
, Frank Kock
, Mark Lehmann
, Phillip Tiburtius
, Burkhardt Funk

Professorship of Information Systems, in particular Data Science

Leuphana University of Lüneburg

Research output: Journal contributions › Scientific review articles › Research

198 Citations (Scopus)

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.

Original language	English
Journal	Journal of Internet Banking and Commerce
Volume	16
Issue number	2
Pages (from-to)	1-18
Number of pages	18
Publication status	Published - 08.2011

Research areas and keywords

Business informatics
Demographic characteristics
Determinants of funding success
Financial characteristics
Group intermediation
Literature review
Peer-to-peer lending

ASJC Scopus Subject Areas

Computer Networks and Communications
Human-Computer Interaction
Finance
Marketing
Management of Technology and Innovation
Computer Science Applications

Access to Document

DownloadFinal published version, 255 KBLicence: CC BY

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Identifikation und Entwicklung von ERP-Prozessen - ERP Competence Center
Funk, B. (Project manager, academic), Niemeyer, P. (Project manager, academic), Lehmann, M. (Project staff), Tiburtius, P. (Project staff), Nottorf, F. (Project staff) & Schmaltz, M. (Project staff)
Investitions- und Förderbank Niedersachsen – NBank
19.08.09 → 31.12.10
Project: Other

Cite this

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title = "Online Peer-to-Peer Lending: A Literature Review",

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 = "Business informatics, Demographic characteristics, Determinants of funding success, Financial characteristics, Group intermediation, Literature review, Peer-to-peer lending",

author = "Alexander Bachmann and Alexander Becker and Daniel B{\"u}rckner and Michel Hilker and Frank Kock and Mark Lehmann and Phillip Tiburtius and Burkhardt Funk",

year = "2011",

month = aug,

language = "English",

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TY - JOUR

T1 - Online Peer-to-Peer Lending

T2 - A Literature Review

AU - Bachmann, Alexander

AU - Becker, Alexander

AU - Bürckner, Daniel

AU - Hilker, Michel

AU - Kock, Frank

AU - Lehmann, Mark

AU - Tiburtius, Phillip

AU - Funk, Burkhardt

PY - 2011/8

Y1 - 2011/8

N2 - 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.

AB - 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.

KW - Business informatics

KW - Demographic characteristics

KW - Determinants of funding success

KW - Financial characteristics

KW - Group intermediation

KW - Literature review

KW - Peer-to-peer lending

UR - https://www.scopus.com/pages/publications/80054905231

M3 - Scientific review articles

SN - 1204-5357

VL - 16

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EP - 18

JO - Journal of Internet Banking and Commerce

JF - Journal of Internet Banking and Commerce

IS - 2

ER -

Online Peer-to-Peer Lending: A Literature Review

Abstract

Research areas and keywords

ASJC Scopus Subject Areas

Access to Document

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Projects

Identifikation und Entwicklung von ERP-Prozessen - ERP Competence Center

Cite this