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Supply and demand on crowdlending platforms: connecting small and medium-sized enterprise borrowers and consumer investors

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  • Maier, Erik

Abstract

Consumer crowdlending to small and medium enterprises is an increasingly relevant financial service phenomenon which depends on platforms as an intermediary. To match borrowers’ supply of loan requests and customers’ investment demand, this article proposes that crowdlending platforms need to initiate double switching behavior. On the one hand, switching of enterprise borrowers from traditional bank financing to crowdlending is driven by greater convenience (speed, flexibility, simplicity) and process transparency. Consumers, on the other, predominantly invest in crowdlending loans based on their economic performance relative to the choice set on the platform. We contribute to the literature on crowdfunding, satisfaction and switching in financial services.

Suggested Citation

  • Maier, Erik, 2016. "Supply and demand on crowdlending platforms: connecting small and medium-sized enterprise borrowers and consumer investors," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 143-153.
    • Handle: RePEc:eee:joreco:v:33:y:2016:i:c:p:143-153
    DOI: 10.1016/j.jretconser.2016.08.004
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    5. Fanea-Ivanovici Mina & Siemionek-Ruskań Małgorzata, 2019. "A Comparative Analysis of Crowdfunding in Poland and Romania," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 182-193, May.
    6. Kim, Junic, 2021. "Platform quality factors influencing content providers’ loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    7. Kukurba Maria & Waszkiewicz Aneta, 2018. "Crowdfunding as a Form of Funding for Businesses in the Culturally-Changing Global Economy: A Literature Review," Journal of Intercultural Management, Sciendo, vol. 10(2), pages 99-137, June.
    8. Malek Hamouda & Imen Mejri & Donia Trabelsi, 2017. "Crowdequity et Crowdlending : deux alternatives de financement des TPE/PME. Le cas de l'entreprise Gifts for change," Post-Print hal-02373759, HAL.
    9. Nisha Mary Thomas, 2023. "Modeling key enablers influencing FinTechs offering SME credit services: A multi-stakeholder perspective," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-27, December.
    10. Ivan D. Kotliarov, 2020. "Digital transformation of the financial industry: The substance and trends," Upravlenets, Ural State University of Economics, vol. 11(3), pages 72-81, July.
    11. Arif Perdana & Pearpilai Jutasompakorn & Sunghun Chung, 2023. "Shaping crowdlending investors’ trust: Technological, social, and economic exchange perspectives," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-17, December.
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