Feasibility and development analysis of P2P online lending platforms in Taiwan

Bih Huang Jin*, Yung-Ming Li, Tsai Wei Liu

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

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.

Original languageEnglish
Title of host publicationTrends and Advances in Information Systems and Technologies
EditorsAlvaro Rocha, Luis Paulo Reis, Sandra Costanzo, Hojjat Adeli
PublisherSpringer Verlag
Pages82-91
Number of pages10
ISBN (Print)9783319777023
DOIs
StatePublished - 1 Jan 2018
Event6th World Conference on Information Systems and Technologies, WorldCIST 2018 - Naples, Italy
Duration: 27 Mar 201829 Mar 2018

Publication series

NameAdvances in Intelligent Systems and Computing
Volume745
ISSN (Print)2194-5357

Conference

Conference6th World Conference on Information Systems and Technologies, WorldCIST 2018
CountryItaly
CityNaples
Period27/03/1829/03/18

Keywords

  • Alternative finance
  • Disintermediation
  • Peer-to-Peer (P2P) lending
  • Regulatory scheme

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