Research On Competitiveness Evaluation And Promotion Countermeasures Of Chinese P2P Lending Platform

The introduction of P2P lending, which has made up for the small and micro financial service area in traditional Chinese financial system, is considered to be the fastest-growing and the most popular financial service in Internet financial area. While P2P lending in China is in the fast growing period, some issues are still concerning on the platform, including bankruptcies, debt escapes during skips down, and difficulties in cash withdraws, further influencing the whole financial market. This paper aims to analyze competitive forces in the market of P2P lending in China, via scientific and efficient approaches strictly according to objective and thorough evaluating indicators, and finally ranking the indicators above.s Meanwhile, through further market segmentation, major problems of P2P lending in China will be revealed to the improved comprehensive competence of the whole platform of P2P lending. Specific research work can be seen as below:Firstly, based on the conductive research of P2P lending in the international market, competitive indicators can give an insight into the developmental business patterns both in domestic and foreign markets of P2P lending. Also, the paper has summed up methods of evaluation in the competitive competence, with the application in various areas. Finally, after a comparative analysis and research, the method of factor analysis has been selected as the evaluation approach in the paper.Secondly, with the reference of competitiveness evaluation index system for both enterprise and commercial banks proposed by Chinese Academy of Social Sciences, a series of 13 evaluation indicators have been deliberately selected for assessing the competence of P2P lending.Thirdly, a competence appraisal model is constructed on the basis of factor analysis, with parameters of the model in the solution to the use of the operating data from 230 platforms, after which an analysis report are clustered within 80 platforms. Furthermore, these calculated results will be in comparison with the Spearman index published by Chinese Academy of Social Sciences Institute of Finance, to verify the validity of the model.Fourthly, on the basis of factor analysis, K-Means clustering analysis will be the approach used in the segmentation of 310 exampled platforms, with four categories containing market leaders, market challengers, market followers and market niches.Through a comparative research on the four types, it can be revealed that the whole industry has the shortcoming of low risk controls, while some platforms are over marketing in the construction of barriers of the industry. Therefore, medium or small platforms may be forced to encounter the stagnant period.Fifthly, the root causes of problems mentioned above can be revealed through a deep analysis, and relative solutions are also introduced from aspects of governmental supervision and management, and disciplines of the entire industry, further in the scientific guidance to the platform transactors.This paper is not only a scientific reference for the decisive investment, but also pointing out the direction of supervision and management of the entire market of P2P lending, efficiently improving the competence of the whole platform. Meanwhile, it is beneficial for the future research on the whole industry of financial service.