To build up a conceptual model for the P2P financing procedure is excellent valuable for supervisors to tack the difficulties of advertising, administration and procedure.
In this paper, we concentrate on the lending that is p2P model and supply a comparative analysis comparing with old-fashioned financial loan procedure.
Firstly, our model demonstrates that the information movement in P2P financing is much more regular and transparent. Next, the model reveals that P2P lending works on the quite various credit audition technique, which depends on information therefore the choice model within the P2P systems. Thirdly, the mortgage administration isn’t complete usually in P2P financing, since most companies that are p2P n’t have the post-loan documents of borrowers.
These findings inspire future studies and methods on P2P financing procedure and technologies that are key.
In contrast to old-fashioned loans from banks, P2P financing features its own features. Firstly, loan providers make direct assets regarding the financing internet site, and additionally they can discover the information that is detailed online borrowers. So that the information asymmetry is reduced in P2P financing. Next, the financing internet site provides an assortment of functions that permit borrowers to point their creditability. Additionally offer functions for loan providers to look loan demand, do evaluations, last but not least come to a decision. (more…)