P2p lending platform evaluation of operating peculiarities

Abstract

Rapidly evolving financial technologies (FinTech) are changing established, time-tested financial services delivery and competition strategies. The growing diversity of financial services is evolving entrepreneurial ecosystems, making it a challenge for all financial market participants. One of the largest Fintech markets in Lithuania is the lending market. This market acts as an alternative to traditional financial institutions’ credit and distinguish by its relatively new and developing. Therefore, the research aims to evaluate the activities and peculiarities of operating lending platforms in Lithuania. The analysis uses P2P lending market development indicators, return and risk identified and analyzed in the research. The study revealed that the portfolio of consumer loans provided through operators of P2P lending platforms is growing steadily every year. AB NEO Finance maintains the same tendencies and secures a leading position in the Lithuanian P2P lending market. AB NEO Finance stands out as the only one of all P2P lending platforms, because it is listed on Lithuania’s stock exchange. It covers more than half of the P2P lending market regarding the amount and number of disbursed consumer loans. Were found that the remaining loan repayment is proliferating in the P2P lending market. However, AB NEO Finance is experiencing a lower number of overdue payment days than the P2P lending market, which indicates a lower risk.