A Comparative Study of online P2P Lending in the USA andChina

Abstract

Peer-to-Peer (P2P) lending provides online users an innovative loaning and investment vehicle without the intermediation of financial institutions. However, the research on online P2P lending is still scarce. In this study we review relevant literature and conduct a comparative study of online P2P lending practices in the USA and China. We find that two categories of credit information, “hard” and “soft” information, may have profound influences on lending outcomes in both countries, but lenders in China is more reliable on “soft” information. This study provides valuable insights for future research and practices and enriches the understanding of online P2P lending across countries.