Download or read book The Performance of Marketplace Lenders written by Roman Kräussl and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze the performance of marketplace lending using loan cash flow data from the largest platform, Lending Club. We find substantial risk-adjusted performance of about 40 basis points per month for the entire loan portfolio. Other loan portfolios grouped by risk category have similar risk-adjusted performance. We show that characteristics of the local bank sector for each loan, such as concentration of deposits and the presence of national banks, are related to the performance of loans. Thus, marketplace lending has the potential to finance a growing share of the consumer credit market in the absence of a competitive response from the traditional incumbents.
Download or read book The Performance of Marketplace Lenders written by Roman Kräussl and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Advances in Crowdfunding written by Rotem Shneor and published by Springer Nature. This book was released on 2020 with total page 543 pages. Available in PDF, EPUB and Kindle. Book excerpt: This open access book presents a comprehensive and up-to-date collection of knowledge on the state of crowdfunding research and practice. It considers crowdfunding models and their different manifestations across a variety of geographies and sectors, and explores the perspectives of fundraisers, backers, platforms, and regulators. Gathering insights from a wide range of influential researchers in the field, the book balances concepts, theory, and case studies. Going beyond previous research on crowdfunding, the contributors also investigate issues of community, sustainability, education, and ethics. A vital resource for anyone researching crowdfunding, this book offers readers a deep understanding of the characteristics, business models, user-relations, and behavioural patterns of crowdfunding.
Download or read book Marketplace Lending Financial Analysis and the Future of Credit written by Ioannis Akkizidis and published by John Wiley & Sons. This book was released on 2015-12-08 with total page 406 pages. Available in PDF, EPUB and Kindle. Book excerpt: The time for financial technology innovation is now Marketplace Lending, Financial Analysis, and the Future of Credit clearly explains why financial credit institutions need to further innovate within the financial technology arena. Through this text, you access a framework for applying innovative strategies in credit services. Provided and supported by financial institutions and entrepreneurs, the information in this engaging book encompasses printed guidance and digital ancillaries. Peer-to-peer lenders are steadily growing within the financial market. Integrating peer-to-peer lending into established credit institutions could strengthen the financial sector as a whole, and could lead to the incorporation of stronger risk and profitability management strategies. Explain (or Explore) approaches and challenges in financial analysis applied to credit risk and profitability Explore additional information provided via digital ancillaries, which will further support your understanding and application of key concepts Navigate the information organised into three subject areas: describing a new business model, knowledge integration, and proposing a new model for the Hybrid Financial Sector Understand how the rise of fintech fits into context within the current financial system Follow discussion of the current status quo and role of innovation in the financial industry, and consider the financial technology innovation landscape from the perspective of an entrepreneur Marketplace Lending, Financial Analysis, and the Future of Credit is a critical text that bridges the gap in understanding between financial technology entrepreneurs and credit institutions.
Download or read book Default Risks in Marketplace Lending written by Sijia Wang and published by . This book was released on 2020 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past decade, marketplace lending as a way to meet consumer's demand for credit has seen rapid growth. Therefore, increasing attention on its credit default risk has been drawn by investors and financial regulators. This paper attempts to explore unsecured marketplace lending using credit modeling by focusing on three types of credit modeling: traditional parametric approaches, machine learning nonlinear nonparametric methodologies, and delinquency transition matrix approach. Using a comprehensive loan-level dataset from 2007 to 2018, this paper develops credit default models and assesses performance for parametric models and nonparametric machine learning approaches with an accuracy ratio of over 90%. My dissertation contributes to the understanding of marketplace lending for investors and regulatory agencies. I confirm the finding that borrower information such as FICO score and loan-specific characteristics such as interest rates and months on book are important predictors of marketplace loan's default events. The study further shows that advanced approaches such as random forest and gradient boosted trees have similar model performance compared to logit regression approaches. Moreover, the delinquency movement models grouped by transitions to delinquent, charged-off, cured and paid-off states help dynamically estimate the potential performance of a loan given its current status. Findings from delinquency transition modeling show that borrowers who have higher current FICO score and change on FICO compared to last period, who pay a lower interest rate on loan with a term of 36 months have a smaller probability of rolling into delinquent states or charge-off states as the loan age increases. My results also suggest that economic variables have limited influence in determining marketplace loan delinquency.
Download or read book Microfinance 2 0 Group Formation Repayment Performance in Online Lending Platforms During the U S Credit Crunch written by Thilo Klein and published by ibidem-Verlag / ibidem Press. This book was released on 2010-10-01 with total page 109 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance 2.0 examines the role of reputation-based intermediaries on the world’s largest peer-to-peer online lending platform. This marketplace as well as other recently opened lending websites allow people to auction microcredit over the Internet and are in line with the disintermediation in financial transactions through the power of enabling technologies. To mitigate severe information asymmetries in anonymous online transactions, the platforms allow lenders to delegate the screening of potential borrowers and the monitoring of loan repayments to designated group leaders. Thilo Klein provides an in-depth study into the mechanisms of these credit information networks and critically assesses their potential to ease access to finance for the credit-constrained during the US credit crunch.
Download or read book Marketplace Lending and Credit Unions written by Indi Omar Madar and published by . This book was released on 2018 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt: Peer-to-peer (P2P) or marketplace lending has expanded rapidly since the 2008 global financial crisis. While the idea of pooling small amounts of money from several lenders is not new, advances in financial technology (fintech) have resulted in scalable, efficient, and global processes. Since Zopa (the world's first P2P lending platform, launched in 2005), the lending has increasingly shifted away from individual lenders working collaboratively to assess loans, and now includes automated decision-making algorithms with institutional lenders such as hedge funds and banks. Consequently, marketplace lending threatens to disrupt many activities of the financial sector. Although the industry has experienced significant growth in the UK and the USA, it is only recently, in 2016, that some Canadian regulations implemented new crowdfunding rules; these include allowing retail lenders to invest up to $10,000 annually. Similar to chartered national banks, Canada's sub-national credit unions might feel challenged by emerging fintech firms. As such, through the resource-based view (RBV) of strategic alliances, this thesis sought to answer the question, How are Canadian credit unions entering the marketplace lending industry? The study employed an exploratory, qualitative design where semistructured interviews were conducted with 17 participants from 12 credit unions (including one credit union central) of the Canadian Credit Union Association (CCUA), but outside of Quebec's Desjardins system of caisses populaires. In these interviews, three areas of prominent credit union business are explored: the use of marketplace lending for small- and medium-sized enterprise (SME) financing; impact investing; and the use of marketplace lending in providing alternatives to payday loan products. The study's findings revealed that out of the 12 credit union members from the sample, three have partnered with fintech firms, one is developing its own lending platform, and the majority are simply monitoring the evolution of marketplace lending in Canada. Regarding the latter, perceived risks and/or barriers include regulations, reputational risk, and difficulty attracting deposits. However, reported opportunities include using marketplace lending to enhance member retention and attraction, and lending to socially and environmentally motivated SMEs. This thesis contributes to the academic literature by providing evidence as to how Canadian credit unions are entering the marketplace lending industry. It details the reported barriers and/or risks and opportunities, and the motivating drivers to form strategic alliances with start-up fintech firms.
Download or read book Disrupting Finance written by Theo Lynn and published by Springer. This book was released on 2018-12-06 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: This open access Pivot demonstrates how a variety of technologies act as innovation catalysts within the banking and financial services sector. Traditional banks and financial services are under increasing competition from global IT companies such as Google, Apple, Amazon and PayPal whilst facing pressure from investors to reduce costs, increase agility and improve customer retention. Technologies such as blockchain, cloud computing, mobile technologies, big data analytics and social media therefore have perhaps more potential in this industry and area of business than any other. This book defines a fintech ecosystem for the 21st century, providing a state-of-the art review of current literature, suggesting avenues for new research and offering perspectives from business, technology and industry.
Download or read book High Loan to value Mortgage Lending written by Charles W. Calomiris and published by Aei Press. This book was released on 1999-01-01 with total page 75 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors weigh the functions of this industry, its practices and policies, and the changing nature of the consumer finance marketplace to determine whether limiting such lending would serve the public interest.
Download or read book What Fuels the Boom Drives the Bust written by Jihad Dagher and published by International Monetary Fund. This book was released on 2011-09-01 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: We show that the lightly regulated non-bank mortgage originators contributed disproportionately to the recent boom-bust housing cycle. Using comprehensive data on mortgage originations, which we aggregate at the county level, we first establish that the market share of these independent non-bank lenders increased in virtually all US counties during the boom. We then exploit the heterogeneity in the market share of independent lenders across counties as of 2005 and show that higher market participation by these lenders is associated with increased foreclosure filing rates at the onset of the housing downturn. We carefully control for counties' economic, demographic, and housing market characteristics using both parametric and semi-nonparametric methods. We show that this relation between the pre-crisis market share of independents and the rise in foreclosure is more pronounced in less regulated states. The macroeconomic consequences of our findings are significant: we show that the market share of these lenders as of 2005 is also a strong predictor of the severity of the housing downturn and subsequent rise in unemployment. Overall our findings lend support to the view that more stringent regulation could have averted some of the volatility on the housing market during the recent boom-bust episode.
Download or read book Successful Lender s Field Guide written by Chris Nichols and published by . This book was released on 2016-08-01 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This Field Guide targets commercial lenders and business development officers seeking innovative lending and marketing techniques, with the intent on maximizing value for both bank and borrower.
Download or read book Market Structure Mortgage Lending Performance Relationship in Illinois Commercial Banks written by William Frederick Landsea and published by . This book was released on 1972 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Australian Banking Efficiency and Its Relation to Stock Returns written by Joshua Kirkwood and published by . This book was released on 2005 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Marketplace Lending written by and published by . This book was released on 2016 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Market Structure mortgage Lending Performance Relationships in Illinois Commercial Banks written by William Frederick Landsea and published by . This book was released on 1966 with total page 314 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Introduction to Mortgages and Mortgage Backed Securities written by Richard K. Green and published by Academic Press. This book was released on 2013-11-21 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Introduction to Mortgages & Mortgage Backed Securities, author Richard Green combines current practices in real estate capital markets with financial theory so readers can make intelligent business decisions. After a behavioral economics chapter on the nature of real estate decisions, he explores mortgage products, processes, derivatives, and international practices. By focusing on debt, his book presents a different view of the mortgage market than is commonly available, and his primer on fixed-income tools and concepts ensures that readers understand the rich content he covers. Including commercial and residential real estate, this book explains how the markets work, why they collapsed in 2008, and what countries are doing to protect themselves from future bubbles. Green's expertise illuminates both the fundamentals of mortgage analysis and the international paradigms of products, models, and regulatory environments. Written for buyers of real estate, not mortgage lenders Balances theory with increasingly complex practices of commercial and residential mortgage lending Emphasizes international practices, changes caused by the 2008-11 financial crisis, and the behavioral aspects of mortgage decision making
Download or read book Marketplace Lending and Consumer Credit Outcomes written by Tim Dore and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
