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The influence of the digital divide on peer-to-peer lending outcomes

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  • Davaadorj, Zagdbazar

Abstract

This study investigates the impact of Digital Divide Index on peer-to-peer loans. The results reveal that a higher index score correlates with higher interest rates and reduced loan funding success and amounts. The research further distinguishes between the socioeconomic and infrastructure elements of the index, finding a more significant impact from socioeconomic factors on all lending metrics. These findings highlight the significant impact of socioeconomic conditions on financial opportunities in digital lending and emphasize the need for policies that go beyond enhancing digital access to address broader socioeconomic inequalities.

Suggested Citation

  • Davaadorj, Zagdbazar, 2024. "The influence of the digital divide on peer-to-peer lending outcomes," Finance Research Letters, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000837
    DOI: 10.1016/j.frl.2024.105053
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    3. Zhu, Yifeng & Li, Qinghai, 2025. "Impact of the three digital divides on residents’ commercial insurance purchase behavior: An empirical study based in China," Research in International Business and Finance, Elsevier, vol. 76(C).
    4. Sahiba Khan & Ranjit Singh & Jayashree Bhattacharjee, 2025. "Factors affecting the probability of funding success and default risk of borrowers in P2P lending: a social network analysis approach," Journal of Marketing Analytics, Palgrave Macmillan, vol. 13(3), pages 645-667, September.

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