IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-65117-6_19.html
   My bibliography  Save this book chapter

Growing Pains: The Changing Regulation of Alternative Lending Platforms

In: The Palgrave Handbook of Technological Finance

Author

Listed:
  • Ding Chen

    (University of Sheffield)

  • Anil Savio Kavuri

    (Australian National University
    Loughborough University)

  • Alistair Milne

    (Loughborough University)

Abstract

We review the legal and regulatory framework covering alternative (“peer-to-peer” or “marketplace”) lending platforms in the UK, the US, China, and more briefly other countries. The main regulatory concerns are (i) enforcing consumer credit rules for unsecured personal lending; and (ii) protection of uninformed retail investors from mis-selling and platform failure. Alternative lending was first established with little regulatory oversight, but there has been substantial reregulation—first in the US via the 2008s decision that platform investments are securities; subsequently in the UK, China, and other countries. We anticipate further reregulation to protect retail investors, limiting the funding of loans from the “crowd.” Promoting credit supply through alternative lending platforms requires also institutional investor participation and embracing the use of technology in platform regulation (“RegTech”).

Suggested Citation

  • Ding Chen & Anil Savio Kavuri & Alistair Milne, 2021. "Growing Pains: The Changing Regulation of Alternative Lending Platforms," Springer Books, in: Raghavendra Rau & Robert Wardrop & Luigi Zingales (ed.), The Palgrave Handbook of Technological Finance, pages 441-475, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-65117-6_19
    DOI: 10.1007/978-3-030-65117-6_19
    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. Chen Ding & Anil S. Kavuri & Alistair Milne, 2021. "Lessons from the rise and fall of Chinese peer-to-peer lending," Journal of Banking Regulation, Palgrave Macmillan, vol. 22(2), pages 133-143, June.

    More about this item

    Keywords

    P2P lending; Loan-based crowdfunding; Consumer protection; Investor protection; Banking; Banking competition; Financial technology; Financial regulation; Marketplace lending; JEL classifications: G21; G23; G28; K22;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

    Statistics

    Access and download statistics

    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:sprchp:978-3-030-65117-6_19. 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.