An Analysis Of The Business Model And Risks Of P2P Lending

With the development of the Internet and traditional financial business in the 21 st century, a new form of financial organization-P2 P lending came into being. P2 P network lending platform pooling the small funds to lend to who needs them through the Internet. The characteristics of P2 P lending are that low barriers to entry, flexible operation, a wide range of coverage etc., it is easy to meet the borrows' need for small short-term funds in the market. The first domestic P2 P lending platform was introduced in 2007. Just in a few years, it has gradually developed into an important complement to our traditional financial system.On the basis of existing relevant research about P2 P lending, this paper starts with the development and operation mechanism of P2 P lending, then compares the differences between several domestic and foreign representative P2 P lending platforms and summarizes its innovative development in China. This paper accounted PPdai's trading records in 2014. According to the statistical analysis, it can be drawn that the borrowers of P2 P lending are mainly distributed in the eastern coastal areas, mostly young men and wage-earners or business owners.However, P2 P lending is an imported product. Due to the development of a relatively short time, couples with the faulty domestic network technology and credit system, many risks exist. This paper analyzes the specific risk and basic risks of domestic P2 P lending and their causes. Then, it determines the regulation principles, formulates specific regulatory scheme and strengthens industry self-discipline.