Peer to Peer lending platforms - crowdfunding evolution at present time

Bc. Jinyang Li

Bachelor's thesis

Abstract:

At present, P2P and crowdfunding are the main development forms of Internet finance, and they have a great influence on promoting the development of small and medium-sized enterprises. Many traditional financial institutions are concentrated in large and medium-sized enterprises, but the support for small enterprises is very small, which provides a good business opportunity for P2P and crowdfunding industries. Since the rise of P2P and crowdfunding, the financing efficiency of financial markets in various countries has been improved, which also promotes the development of Inclusive Finance. As a new financing channel, P2P and crowdfunding have developed rapidly in recent years, but they must be supervised effectively. This paper comprehensively analyses the development status and trend of P2P and crowdfunding industry, and the main purpose is to study the risks faced by P2P loan platform and crowdfunding platform, and how to avoid these risks, and how to supervise the company. Through the methods of investigation, literature research and analysis, this paper makes a normative analysis of relevant data, and systematically sorts out the development of P2P and crowdfunding by reading many research literatures. The results show that there are still many risks in these two industries, because these two industries are still in the early stage of development, so the regulatory awareness is relatively weak, and the lack of risk management research leads to the bankruptcy of many platforms. Solving these problems is of great significance for promoting the healthy development of online small loan business, which can effectively improve the inclusive nature of financial services, improve the quality and efficiency of financial services and reduce the cost of financial services. Finally, feasible countermeasures and suggestions are proposed for each risk easily induced by P2P and crowdfunding.

Abstract:

At present, P2P and crowdfunding are the main development forms of Internet finance, and they have a great influence on promoting the development of small and medium-sized enterprises. Many traditional financial institutions are concentrated in large and medium-sized enterprises, but the support for small enterprises is very small, which provides a good business opportunity for P2P and crowdfunding industries. Since the rise of P2P and crowdfunding, the financing efficiency of financial markets in various countries has been improved, which also promotes the development of Inclusive Finance. As a new financing channel, P2P and crowdfunding have developed rapidly in recent years, but they must be supervised effectively. This paper comprehensively analyses the development status and trend of P2P and crowdfunding industry, and the main purpose is to study the risks faced by P2P loan platform and crowdfunding platform, and how to avoid these risks, and how to supervise the company. Through the methods of investigation, literature research and analysis, this paper makes a normative analysis of relevant data, and systematically sorts out the development of P2P and crowdfunding by reading many research literatures. The results show that there are still many risks in these two industries, because these two industries are still in the early stage of development, so the regulatory awareness is relatively weak, and the lack of risk management research leads to the bankruptcy of many platforms. Solving these problems is of great significance for promoting the healthy development of online small loan business, which can effectively improve the inclusive nature of financial services, improve the quality and efficiency of financial services and reduce the cost of financial services. Finally, feasible countermeasures and suggestions are proposed for each risk easily induced by P2P and crowdfunding.

Keywords

Peer to peer lending, Crowdfunding, Online finance, Financial services, Small and medium-sized enterprises

Language used: English

Date on which the thesis was submitted / produced: 26. 4. 2021

Thesis defence

• Date of defence: 8. 6. 2021
• Supervisor: Ing. Tomáš Hes, Ph.D.
• Reader: Ing. Miroslav Pavlák, Ph.D.

University of Finance and Administration

Bachelor programme / field:
Economics and Management / Business Management and Corporate Finance