Analysis on Peer-to-Peer lending platforms in China

Abstract

Peer-to-Peer lending, or P2P Lending for short, is an emerging Internet financial lending model, which has become the focus of heated discussions in the financial field because of its rapid development and huge risks. Based on such social situation, the topic of the thesis is the analysis on Peer-to-Peer lending platforms in China. The research questions and main content focused on the definition, motivators, SWOT analysis and improvement measures of P2P lending platforms in China. During the research, the qualitative method, quantitative method and survey method were used. As for the model, the thesis used simple regression model, such as y1=β0+β1x1 and t-Test to explore the factors that significantly impact the development of P2P lending in China as well as the comparison between its advantages and disadvantages. In the end, the results show that the development of Internet and the deposit rate of traditional financial institutions have a significant impact on the development of P2P lending platforms. In addition, at the present stage, the public has more negative views than positive attitudes towards P2P lending platforms in China. Thus, P2P lending platforms would continue to face a development crisis unless relevant departments take action to make improvement, and the measures for improvement are also discussed at the end of the thesis.