What makes the P2P lending model attractive to both lenders and borrowers over traditional lending channels? / Othmane ZAOUIA / 2020

Titre : What makes the P2P lending model attractive to both lenders and borrowers over traditional lending channels? Type de document : Mémoire Auteurs : Othmane ZAOUIA, Auteur Année de publication : 2020 Importance : 31 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec votre compte Office 365 via le bouton CONNEXION en haut de page. Langues : Anglais (eng) Mots-clés : Management FINANCE D'ENTREPRISE ; PRET ; EMPRUNT Résumé : One of the areas impacted by the advent of the Fintech movement is the financial services industry, with the emergence of a new business model of financial intermediation known as the peer-to-peer (P2P) lending, also called Social Lending with the like of LendingClub, Prosper, Funding Circle and more. This seminar paper studies the P2P lending and the determinants of loan default using the data of 118 925 36-Months maturity loans issued in 2015 and matured in 2018. A binomial logistic regression was performed on the different credit sub-grade (A1 – D5) using the software “IBM SPSS Statistics” where we found that there are 9 variables that determine the probability of default: Loan amount, Interest rate, Annual income, Debtto-income ratio, Inquiries in the last 6 Months, Months since last delinquency, Open credit lines, Revolving credit utilization and Total credit lines. A T-Test was done as well on the different descriptive characteristics of “Fully paid loans” and “Defaulted loans” whereby we observed that the “Interest rate” was the key determinant of loan default. This paper also treats the subject of the socio-economic impact of this new type of alternative finance, such as making it possible for anyone, anywhere and at any time to access the credit market easily and subscribe for a loan without having to satisfy banks strict criteria. Programme : PGE-Rouen Spécialisation : Finance d’Entreprise - Corporate Finance Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=531701