A Model for Lender-Borrower Trust in Peer-To-Peer Lending

Sukmaningsih, Dyah Wahyu

doi:10.21512/comtech.v9i1.4287

Cited by 8 publications

(6 citation statements)

References 43 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For borrowers, disclosing more effective information can attract investors to a certain degree and increase the loan success rate (Chen, Huang & Shaban, 2020). Information disclosed by borrowers can be divided into hard information and soft information (Iyer, Khwaja, Luttmer & Shue, 2016), which contribute to the establishment of trust relationship between lenders and borrowers (Sukmaningsih, 2018). Hard information refers to information that can be expressed by accurate hard indexes, for example, assets, income, and credit rating.…”

Section: Introductionmentioning

confidence: 99%

Can Readability of Loan Description Affect Loan Success Rate and Loan Cost?: A Textual Analysis of P2P Loan Description

Jiang

Fang

et al. 2020

View full text Add to dashboard Cite

Text is an important form of information transfer. In a P2P (Peer-to-Peer) loan market with severe information asymmetry, loan descriptive information voluntarily written by a borrower may generate significant influence on investors’ decision-making. As an important language feature, readability determines whether the audience can accurately identify textual contents. To discuss the influence of readability of loan description on borrowing behaviors, the data of a Chinese P2P lending platform Renrendai during 2013–2017 were used in this study. Readability index of loan description was constructed through the textual analysis method, followed by an empirical verification of the influences of readability of loan description on loan success rate and loan cost. Results indicate that the readability of loan description in China’s P2P loan market can generate incremental information, and the readability of loan description has evident nonlinear relations with loan success rate and loan interest rate. Moreover, the readability of loan description presents a “reverse U-shaped” relation with loan success rate and a “U-shaped” relation with loan interest rate. Demographic information (gender and educational background) of borrowers will not influence investors’ feedback behaviors toward the readability of loan description. Conclusions provide empirical evidence for standardizing loan descriptive information on P2P lending platforms.

show abstract

Section: Introductionmentioning

confidence: 99%

Can Readability of Loan Description Affect Loan Success Rate and Loan Cost?: A Textual Analysis of P2P Loan Description

Jiang

Fang

et al. 2020

View full text Add to dashboard Cite

show abstract

“…Another reason trust may not have a direct effect is that the trust-building process in P2P lending can be influenced by various factors, including the platform's design and the information provided to users. A study on a model for lender-borrower trust in P2P lending proposed that trust can be built through the use of hard information, soft information, and social capital, which are all factors that can be influenced by the platform's design and user interactions (Sukmaningsih, 2018). Additionally, the impact of trust on P2P lending can be influenced by the specific context in which the technology is used.…”

Section: Figure1 Hypothesis Testing Resultsmentioning

confidence: 99%

Moslem Intention to Use Sharia Peer to Peer Lending: A Case in Indonesia using Technology Acceptance Model (TAM)

Rusadi,

Azifah,

Rusydiana

2024

JSE

View full text Add to dashboard Cite

Rapid technological developments have an impact on the growth of the digital economy, one of which is the Financial Technology (fintech) sector. One of the fintechs that is developing in the society is fintech peer to peer lending. Currently, sharia-based fintech peer to peer lending is also present as an alternative solution for people who want to fund and apply for sharia-based financing. To see the development of sharia peer to peer lending, the researcher conducted this research with the aim of analyzing the factors that influence the interest of the Indonesian people in using digital technology services, namely sharia peer to peer lending using the Technology Acceptance Model (TAM). The research method used is quantitative research using primary data, namely through distributing questionnaires to 100 respondents, both those who have used sharia peer to peer lending or have never used it. The variables used in this study were adopted from the Technology Acceptance Model (TAM), namely trust, ease of usefulness, risk and sharia compliance. The conclusion of this study shows that all variables do not have a positive influence on interest in using sharia peer to peer lending.

show abstract

“…In an attempt to build trust and reputation among the users of the P2P lending platform is required to establish strong and reliable social networks to mitigate the trust issue and perceived institutional risks (Chen, Lai & Lin, 2014). Sukmaningsih (2018) suggested trust can be established among borrowers by offering full access to borrowers' information online, for example, photo, age, gender, national ID through social networks. Mohammadi and Broström (2018) disclosed that distrust is greatly correlated with larger amounts of loans, longer payment cycles, and greater geographical distance between lenders and borrowers.…”

Section: Perceived Risks and Trustmentioning

confidence: 99%

Determination of the Benefits and Risks of Peer-to-Peer (P2p) Lending: A Social Network Teory Approach

Purkayastha

Tuzlukaya

2021

CJFA

View full text Add to dashboard Cite

Peer-to-Peer lending which is also known as P2P is an online financial investment platform where individual investors finance projects by lending money to individual borrowers through social networks. P2P models usually contributing to less privileged people especially entrepreneurs and frontier groups who do not have access to formal financial services. However, due to the economic conditions and lack of government support, P2P lending platforms in developing countries often fail to reveal the 'credit history' and 'indebtedness' of individual borrowers which have an expressive impact on loan performance. The objective of this study is to demonstrate theoretically the factors those influence the lenders to participate in the P2P lending platform in Nadia Nahar Purkayastha, Şule Erdem Tuzlukaya 132 developing countries and the associated risks. For this purpose, two propositions are developed to examine the factors to demonstrate the role of the social network is also combined to further explain the P2P lending.

show abstract

A Model for Lender-Borrower Trust in Peer-To-Peer Lending

Cited by 8 publications

References 43 publications

Can Readability of Loan Description Affect Loan Success Rate and Loan Cost?: A Textual Analysis of P2P Loan Description

Can Readability of Loan Description Affect Loan Success Rate and Loan Cost?: A Textual Analysis of P2P Loan Description

Moslem Intention to Use Sharia Peer to Peer Lending: A Case in Indonesia using Technology Acceptance Model (TAM)

Determination of the Benefits and Risks of Peer-to-Peer (P2p) Lending: A Social Network Teory Approach

Contact Info

Product

Resources

About