IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-72535-8_18.html
   My bibliography  Save this book chapter

The Financial Intermediary Role of Peer-To-Peer Lenders

In: Innovations in Social Finance

Author

Listed:
  • Barbara Dömötör

    (Corvinus University of Budapest)

  • Tímea Ölvedi

    (Corvinus University of Budapest)

Abstract

In recent years, new service providers appeared in many segments of the economy. Financial intermediation is also affected by this new trend. In general, conventional-type banks play the intermediary role of connecting lenders and debtors. Aside from this, banks also own competitive advantages in financial services, such as performing asset transformation, processing information, and monitoring debtors. In the aftermath of the 2008 financial crisis, commercial banks became stricter with respect to their lending activities, providing the space for other, non-traditional forms of financing. The increasingly important role played by alternative financing is also supported by a technological development in finance called FinTech. The largest share of alternative finance is possessed by peer-to-peer lending (P2P), a type of disintermediation that facilitates funding and investment between private individuals through an online platform. P2P platforms contribute to social welfare by extending the advantages of direct finance to smaller-scale lending. Clients, however, should also consider the associated risks. This chapter offers an overview of P2P lending’s characteristics. It identifies the main differences and competitive advantages of these platforms, compared to traditional banks. Although the chapter offers some rational and irrational explanations for the relevance of platform lending, it also highlights the fact that the future of P2P platforms is far from obvious.

Suggested Citation

  • Barbara Dömötör & Tímea Ölvedi, 2021. "The Financial Intermediary Role of Peer-To-Peer Lenders," Springer Books, in: Thomas Walker & Jane McGaughey & Sherif Goubran & Nadra Wagdy (ed.), Innovations in Social Finance, edition 1, pages 391-413, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-72535-8_18
    DOI: 10.1007/978-3-030-72535-8_18
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-030-72535-8_18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.