Marketing-Mix of Online Social Lending Websites

Abstract

With the rise of microfinance in developing countries and its evolution to a business model in developed nations, microfinance has fully transitioned to the internet, taking the distinctive form of social lending. However, the marketing trends of emerging peer-to-peer micro-lending websites have been largely unexplored during its rise to recognition due to most studies focusing on financial, economic, political and humanitarian issues in context to microfinance. However, based on a sample of eight popular social lending websites, this paper uses cases to analyze the marketing elements of these sites to better understand how they function and to predict the future.

Exploring Consumer's Needs and Motivations in Online Social Lending for Development

“…Then the lender must choose the charity or OSL4D organization to support. Assadi and Hudson (2010) examine the marketing mix of eight online social lending websites: Kiva, Fynanz, LendingClub, Microplace, MyC4, Prosper, VirginMoney, and Zopa. From this list, only three (Kiva, Microplace, and MyC4) are identified as having humanitarian goals of poverty alleviation through entrepreneurship.…”

Legal and Tax Aspects of Capital Acquisition Under Crowd Funding by Micro and Small Businesses

“…Ten innowacyjny model finansowania MSP znacznie zmniejsza znaczenie pośredników i związane z nimi koszty transakcyjne (Keh-Wen i in., 2016, s. 33). Odbywa się to za pomocą jednej z wielu stron internetowych, gdzie pożyczkodawcy chcieliby wesprzeć niewielkimi pożyczkami MSP po zapoznaniu się z profilem danego przedsiębiorcy, jak również zaproponowanym wykorzystaniem funduszy (Mittelman, Rojas-Méndez, 2013, s. 310;Ashta, Assadi, 2010;Assadi, Hudson, 2010). W literaturze wskazuje się na cztery podstawowe modele finansowania społecznościowego wraz z submodelami:…”

Why minority interests may be encouraged by majority regulation: A case study illustrated by slow money movement

“…This direct financing is viewed in mission statements of peer to peer commercial lending sites which we are witnessing on the internet, such as Zopa, Prosper, Lending Club, and a score of others (Assadi & Hudson, ). Less direct, but equally emphatic that they are democratizing financing by allowing the small investor to finance microenterprises around the world are organizations such as Kiva, Babyloan, or Rangde (Assadi & Hudson, ). In fact, crowdfunding is now booming and there may be close to a thousand such websites offering possibilities to donate, lend or invest in equity (the latter may not be legal).…”