Abstract
Recent frequent “thunderstorm incidents” of the internet financial platforms (IFPs) have caused the panic of investors. In order to measure and reduce the investment risk of IFPs, the focus of this study is to evaluate the reputation of IFPs regarding investment risk. First, the reputation evaluation indicator system of IFPs is constructed from two dimensions of direct and indirect reputations. Then, based on this system, an improved fuzzy evaluation approach (IFEA) integrating the method of fuzzy comprehensive evaluation (FCE), the analytic hierarchy process (AHP), and the factor analysis (FA) are proposed for evaluating the reputation of IFPs. Finally, a case study based on the data of 20 peer-to-peer (P2P) lending platforms from “Home of Online Loans” (HOL) in China is used to illustrate the IFEA. Results show that the IFEA can reduce uncertainty and randomness in the determination process of indicator weight and membership degree and therefore accurately obtain the reputation level of IFPs and help investors make better decisions. Meanwhile, the key factors in determining the reputation of IFPs are identified, thereby improving the reputation level of the IFPs.
Highlights
With the increasing application of emerging information technology such as cloud computing (CC), big data (BD), and artificial intelligence (AI) in the financial field, Internet financial platforms (IFPs) have rapidly spread around the world [1]
E overall importance weights and ranking of the reputation indicators among the IFPs obtained by applying TOPSIS, decision-making trial and evaluation laboratory (DEMATEL), and improved fuzzy evaluation approach (IFEA) are given in Table 20. e results of the IFEA show that the weights and ranking of the reputation indicators X6>X1>X7>X5>X3>X2 are the highestranking among the 24 indicators
The highly significant indicators obtained from the IFEA are almost consistent with the TOPSIS and DEMATEL, which indicates that IFEA has a great performance for displaying the effectiveness of the reputation indicators
Summary
With the increasing application of emerging information technology such as cloud computing (CC), big data (BD), and artificial intelligence (AI) in the financial field, Internet financial platforms (IFPs) have rapidly spread around the world [1]. IFPs include platforms of peer-to-peer (P2P) lending, crowd-funding, online banking, and supply chain finance [2, 3]. E emergence of IFPs effectively broadens the business boundary of financial services and promotes the effectiveness of optimal allocation of financial resources. Because of malicious fraud, improper operation, and loss of contact, more than 6000 P2P lending platforms have gone bankrupt in China by the beginning of 2021, which brought huge economic loss to investors [6]. Investors often encounter great investment risk in the area of the Internet finance
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