Research On The Impact Of Additional Services On The Operation Of Online P2P Lending Platform

Peer-to-peer(P2P)lending is a new internet financial service,which means borrowers and investors can make transactions directly through online P2P lending platform without financial intermediaries such as banks.Compared with the traditional bank,online P2P lending has the advantages of lower investment requirement,more simple process,higher interest rate,and it has a good application in micro finance.The number of P2P platforms increased fast in recent years.However,due to the imperfection of credit system and regulatory rules,there are many platform of bankruptcy in Chinese P2P lending industry,and relevant investors have suffered heavy financial losses.With the introduction of a series of national regulatory policies,the development speed of P2P lending in China has slowed down now,and the industry is facing severe challenges in the future.Due to the high risk of P2P investment in China,platforms began to provide"additional services" in addition to information intermediary,such as capital deposit,bid insurance and so on,in order to increase investors'confidence and attract potential users.Foreign P2P lending platforms are mostly limited to the role of information intermediary in the P2P lending process and do not provide other types of services.In China,P2P lending platform should innovate its local service mode in the environment of "strong competition and strict supervision".It is of great practical significance and reference value to study the role of such services for the sound development of Inclusive Finance in China.Is additional service important or useless?Can it significantly affect the business performance of P2P lending platform?Previous studies on platform additional services are limited,and the results are not clear.For the reason,based on the data set of 57 P2P lending platforms in 2019 on "wangdaizhijia.com",we established ELM dual-routes model,and explored the significant impact of additional services on the operation of P2P platform through OLS linear regression.The results show that:(1)additional services can affect the operation of P2P platform through central routes(capital deposit,bid insurance)and peripheral routes(creditor's rights transfer and automatic bidding),and the platform providing additional services performs better than other platforms in terms of business data and failure risk.(2)Providing bid insurance services can effectively improve the trading volume of P2P lending platform funds and the number of investors.(3)Providing automatic bidding service can significantly improve the proportion of active investors in P2P lending platform,that is,the proportion of users who actually invest in the registered users of the platform will be higher.(4)Furthermore,we also found that the platforms that provide capital deposit services and have higher freedom of transfer of creditor's rights have no significant difference in operating conditions with other platforms,but have a lower risk of bankruptcy.Finally,combined with ELM dual-routes model and linear regression results,this paper puts forward some suggestions for P2P lending platform,investors and industry regulators.