An Empirical Study Of The P2P Online Lending Behavior

P2P online lending is a new type of financial service mode usinginternet technology, it is very promising in providing financing service forsmall and medium-sized enterprises and individuals.Since it emerged fromthe UK in2005, it developed quickly on a global scale. After several yearsof development, countless scholars have focused on it. P2P online lendingemerged in China in2007and has developed rapidly especially in thesetwo years, hundreds of lending platforms have been founded.The P2P online lending can meet the demand of microfinance whichtraditional financial institutions ignore, it has a very important significancefor micro enterprises’ financing as well as public welfare for povertyalleviation. However, there are three major problems in this industry---thelow success rate, high cost of lending and high default rates. This paperproposes a research model based on exploration of other scholars，and wemake an empirical research of the lending behavior,at last we provideappropriate recommendations for the platform.First we propose the model and write a program to crawl thetransaction data from PPDai.Second we use mathematical statisticsmethods to study what’s the key factors and how much do they influencethe funding success probability and financing cost, also probe the defaultbehavior. At last we advise the platform to form a prediction program ofsuccess rate and default rate to enhance the operating efficiency andfinancing functions of this industry. This study is significant to solve thethree major problems in the current P2P lending industry.