IDEAS home Printed from https://ideas.repec.org/h/spr/eurchp/978-3-319-76288-3_17.html
   My bibliography  Save this book chapter

Comparison of Borrower Default Factors in Online Lending

In: Consumer Behavior, Organizational Strategy and Financial Economics

Author

Listed:
  • Ginta Railiene

    (Kaunas University of Technology)

Abstract

The factors describing the P2P borrower late payments and defaults are analyzed in the paper. Credit scoring and credit rating techniques are developed and used by finance institutions, but the features of online lending encourages to apply new practices in order to develop the decision support patterns for online lenders that are not professional investors. P2P platforms use credit scoring usually based on third party calculations, but they may be improved using wider soft information sources. The credit risk valuation of online borrowers is relatively new research area, where hard and soft information is used and assessed with different statistical methods, including the big data analysis. The paper aims to define the factors of online borrower late payments by systemizing the recent research findings and comparing them with results got from Lithuanian P2P platform data. The groups of factors researched are borrower and loan characteristics, borrower assessment and creditworthiness. The main findings allow to form specific propositions for lender decision support pattern suggesting the factors explaining the default: lower credit ratings and higher interest rates; greater loan amount and loan purpose for business, consolidation, home improvement and other; borrower indebtedness, employment length, age.

Suggested Citation

  • Ginta Railiene, 2018. "Comparison of Borrower Default Factors in Online Lending," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Ugur Can (ed.), Consumer Behavior, Organizational Strategy and Financial Economics, pages 231-240, Springer.
    • Handle: RePEc:spr:eurchp:978-3-319-76288-3_17
    DOI: 10.1007/978-3-319-76288-3_17
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Chao & Wang, Junbo & Wu, Chunchi & Zhang, Yue, 2023. "Voluntary disclosure in P2P lending: Information or hyperbole?," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    2. Alexander E. Ushanov, 2022. "Retracted: Internal procedures of the risk‐oriented lending process in the bank," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(2), pages 99-114, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eurchp:978-3-319-76288-3_17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.