IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-031-36570-6_1.html
   My bibliography  Save this book chapter

A Survey of Machine Learning Methodologies for Loan Evaluation in Peer-to-Peer (P2P) Lending

In: Data Analytics for Management, Banking and Finance

Author

Listed:
  • Yan Wang

    (Kennesaw State University, School of Analytics and Data Science)

  • Xuelei Sherry Ni

    (Kennesaw State University, School of Analytics and Data Science)

Abstract

In the peer-to-peer (P2P) lending market, borrowers apply for a loan through a virtual platform and get money from investors if they meet certain criteria. Meanwhile, investors lend money to certain borrowers and possibly earn the profit generated by the interest rate. Compared with the traditional banking system, P2P lending has a lower operating cost and a faster approval process, which makes it a major competitor to the traditional banking system. However, P2P loans are not insured so investors need to tolerate the risk of a financial loss if the borrower defaults on the loan. Over the last decade, numerous studies have been carried out to investigate how machine learning techniques can be utilized to help investors evaluate P2P loans, thereby guiding them to make low-risky and highly profitable investment decisions. This chapter intends to first review the development, business model, and various platforms of P2P lending. Then we provide a comprehensive overview of various loan evaluation approaches, with a focus on the application of machine learning methodologies in P2P lending. At the end of the chapter, we discuss the potential challenges that the P2P market may confront in the future to provide research directions for future researchers.

Suggested Citation

  • Yan Wang & Xuelei Sherry Ni, 2023. "A Survey of Machine Learning Methodologies for Loan Evaluation in Peer-to-Peer (P2P) Lending," Springer Books, in: Foued Saâdaoui & Yichuan Zhao & Hana Rabbouch (ed.), Data Analytics for Management, Banking and Finance, pages 1-49, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-36570-6_1
    DOI: 10.1007/978-3-031-36570-6_1
    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
    for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    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:978-3-031-36570-6_1. 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.