TY - GEN
T1 - Feasibility and development analysis of P2P online lending platforms in Taiwan
AU - Jin, Bih Huang
AU - Li, Yung-Ming
AU - Liu, Tsai Wei
PY - 2018/1/1
Y1 - 2018/1/1
N2 - After the financial crisis, the governments have been stricter in regulating the financial systems so that banks to raise their lending thresholds. Unmet demands for loans coupled with the matured techniques impel the emergence of Peer-to-Peer (P2P) lending. The first online P2P lending platform, Zopa, was established in 2005. The Peer-to-Peer Finance Association (P2PFA) and the Financial Conduct Authority (FCA) promote the steady growth in UK P2P lending marketplace together. Prosper and Lending Club are two major P2P lending platforms. After the financial crisis, Securities and Exchange Commission (SEC) has strengthened regulations on the US P2P lending corporations. In this paper, we discuss the development and supervision process of P2P lending in the UK and US, as well as Taiwan lending marketplace on the aspects of environmental and legal. Further, we examine the impact of 4 interested parties - borrowers, investors, banks and P2P lending platforms, and whether the development of P2P lending is suitable for Taiwan. In conclusion, the development of P2P lending in Taiwan partly benefits the interested parties. Hence, this paper suggests that the P2P lending platforms should readjust the operational strategies to fit Taiwan’s social culture, encouraging the government to extend the related regulations, and partnered or competing healthily with banks in order to develop sustainably.
AB - After the financial crisis, the governments have been stricter in regulating the financial systems so that banks to raise their lending thresholds. Unmet demands for loans coupled with the matured techniques impel the emergence of Peer-to-Peer (P2P) lending. The first online P2P lending platform, Zopa, was established in 2005. The Peer-to-Peer Finance Association (P2PFA) and the Financial Conduct Authority (FCA) promote the steady growth in UK P2P lending marketplace together. Prosper and Lending Club are two major P2P lending platforms. After the financial crisis, Securities and Exchange Commission (SEC) has strengthened regulations on the US P2P lending corporations. In this paper, we discuss the development and supervision process of P2P lending in the UK and US, as well as Taiwan lending marketplace on the aspects of environmental and legal. Further, we examine the impact of 4 interested parties - borrowers, investors, banks and P2P lending platforms, and whether the development of P2P lending is suitable for Taiwan. In conclusion, the development of P2P lending in Taiwan partly benefits the interested parties. Hence, this paper suggests that the P2P lending platforms should readjust the operational strategies to fit Taiwan’s social culture, encouraging the government to extend the related regulations, and partnered or competing healthily with banks in order to develop sustainably.
KW - Alternative finance
KW - Disintermediation
KW - Peer-to-Peer (P2P) lending
KW - Regulatory scheme
UR - http://www.scopus.com/inward/record.url?scp=85045135329&partnerID=8YFLogxK
U2 - 10.1007/978-3-319-77703-0_8
DO - 10.1007/978-3-319-77703-0_8
M3 - Conference contribution
AN - SCOPUS:85045135329
SN - 9783319777023
T3 - Advances in Intelligent Systems and Computing
SP - 82
EP - 91
BT - Trends and Advances in Information Systems and Technologies
A2 - Rocha, Alvaro
A2 - Reis, Luis Paulo
A2 - Costanzo, Sandra
A2 - Adeli, Hojjat
PB - Springer Verlag
T2 - 6th World Conference on Information Systems and Technologies, WorldCIST 2018
Y2 - 27 March 2018 through 29 March 2018
ER -