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|Publication type:||Master thesis|
|Title:||Marketplace lending and its chances and risks for key stakeholders|
|Advisors / Reviewers:||Schnauss, Martin|
|Publisher / Ed. Institution:||ZHAW Zürcher Hochschule für Angewandte Wissenschaften|
|Publisher / Ed. Institution:||Winterthur|
|Subject (DDC):||332: Financial economics|
|Abstract:||The P2P lending market has significantly increased during the last few years. In Switzerland, the credit volume has more than doubled in just one year. However, in an international comparison China and the United Kingdom take on the leading position in the booming market. Analysts predict that the P2P loan market reaches one trillion U.S dollars by the year 2050. Apart from that, the introduction of alternative credit provision challenges the traditional financing models. Hence, there must be several benefits for preferring a P2P loan instead of applying and investing via the traditional way. Despite the benefits, the recent developments have revealed risks which potentially have farreaching consequences. The global credit market cannot afford to ignore the influence of the P2P lending and therefore a deep understanding of the underlying processes and potentials are required. Therefore, this thesis investigates the attributes of marketplace lending and whether the risks outweigh the chances for key stakeholders. In order to answer the research question, the thesis follows a qualitative approach. Existing literature is reviewed, compared and extended through a back and forth theory search. Furthermore, an interview with the Swiss platform Cashare was conducted. Due to the increased popularity and pressure of crowdlending platforms, it was not possible to conduct further interviews. Nevertheless, based on the literature review scenarios and assumptions are elaborated in order to carefully evaluate opportunities and risks for the three key stakeholders. The findings demonstrate high profitable returns on a low-cost basis as main benefits for investors. However, high returns simultaneously imply higher risks such as credit and platform risks, which are valued to be the most significant. Borrowers, which represents the counterpart, are profiting from an inexpensive and convenient financing alternative. Debtors are not directly involved in risks but rather affected by uncertainties occurring from the market or the platform. The decentralization of credit risks, low-cost structure and automated processes are valued to be competitive advantages for a P2P platform. However, the big data approach used for the credit assessment as well as the cost structure first need to prove their potential during a full economic cycle. Besides that, a marketplace lender primarily has to deal with reputational and operational risks.|
|License (according to publishing contract):||CC BY-NC-ND 4.0: Attribution - Non commercial - No derivatives 4.0 International|
|Departement:||School of Management and Law|
|Appears in collections:||MSc Banking and Finance|
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|BerliatRahel_Masterthesis_en.pdf||1.99 MB||Adobe PDF|
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Berliat, R. (2019). Marketplace lending and its chances and risks for key stakeholders [Master’s thesis, ZHAW Zürcher Hochschule für Angewandte Wissenschaften]. https://doi.org/10.21256/zhaw-19572
Berliat, R. (2019) Marketplace lending and its chances and risks for key stakeholders. Master’s thesis. ZHAW Zürcher Hochschule für Angewandte Wissenschaften. Available at: https://doi.org/10.21256/zhaw-19572.
R. Berliat, “Marketplace lending and its chances and risks for key stakeholders,” Master’s thesis, ZHAW Zürcher Hochschule für Angewandte Wissenschaften, Winterthur, 2019. doi: 10.21256/zhaw-19572.
Berliat, Rahel. Marketplace Lending and Its Chances and Risks for Key Stakeholders. ZHAW Zürcher Hochschule für Angewandte Wissenschaften, 2019, https://doi.org/10.21256/zhaw-19572.
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