Credit Risk Identification And Investment Return In Online Lending Market

As an important part of Internet finance,P2 P lending faces opportunities and challenges.On the one hand,P2 P lending increases finance efficiency.On the other hand,due to the imperfect supervision and the immature credit system,there are many risks in China’s P2 P lending market,the most important of which is credit risk.For P2 P investors,better identification of credit risk can make more scientific decisions.For the P2 P lending platform,a better understanding of the behavior of investors can improve the design and mechanism of the platform better.From the micro perspective of investors,this paper raises the following questions: 1)How can investors identify credit risk through complicated information in a short time? 2)Are investment decisions and risk identification capabilities different among different types of investors? 3)Is the investment income related to the risk identification capability? 4)Does the platform itself have an impact on investor decisions?This paper uses the data from lending platform and eye movement experiment.The results show that: 1)When making risk decisions under multiple information,investors don’t process all the information,but select the useful information.Eye movement data shows that investors consider credit status first,and then consider the income.2)Different types of investors have different risk identification characteristics and investment decisions.For example,women pay more attention to credit information,while men pay more attention to interest rate.Women are more cautious and conservative,while men are more aggressive and confident.At the same time,the information that investors obtain visually does affect the investor’s behavior and decision-making,but there will be a shift between visual attention and behavior.3)Male risk identification ability is stronger than female,and men receive more income than women.4)The P2 P platform’s safeguard system,information transparency and compliance factors affect investors’ risk identification and decision-making.This research provides a new perspective for credit risk identification,which not only helps investors improve their risk identification capabilities,but also helps platforms and regulatory authorities to better manage.