TY  - UNPD
A1  - Kräussl, Roman
A1  - Kräussl, Zsofia
A1  - Pollet, Joshua M.
A1  - Rinne, Kalle
T1  - The performance of marketplace lenders
N2  - We analyze the performance of marketplace lending using loan cash flow data from the largest platform, Lending Club. We find substantial risk-adjusted performance of about 40 basis points per month for the entire loan portfolio. Other loan portfolios grouped by risk category have similar risk-adjusted performance. We show that characteristics of the local bank sector for each loan, such as concentration of deposits and the presence of national banks, are related to the performance of loans. Thus, marketplace lending has the potential to finance a growing share of the consumer credit market in the absence of a competitive response from the traditional incumbents.
T3  - CFS working paper series - No. 706 
KW  - Marketplace lending
KW  - household finance
KW  - financial intermediation
KW  - financial innovation
KW  - competition
Y1  - 2023
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/69126
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-691266
UR  - https://ssrn.com/abstract=3240020
VL  - 20 May 2022
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -