Social reputation loss model and application to lost-linking borrowers in a internet financial platform

Abstract

A social reputation loss model for loss of social reputation upon borrower disconnection on internet financial platforms is proposed. Firstly, the characteristics of on-line social networks of the borrowers are analysed from P2P platform, Chat platforms, QQ platform, one-click help platform, etc. Secondly, the characteristics of offline social networks of the borrowers are analysed in terms of blood, geographical, business, academic, heart, and ethnic relationships. Thirdly, from the six main factors, such as amount of default funds, disconnection time point, status of joint guarantee performance, project success probability, the amount and severity of network punishment, the impacts on the social reputation of lost-link borrowers are evaluated. Then, by quantifying these six main influencing factors, we establish a social reputation loss model on the lost-linking borrowers in P2P platform, and explore the relationship between borrower disconnection time and social reputation loss. The work proves that the social reputation loss of borrowers gradually decreases with the delay of disconnection time and other mathematical propositions. Finally, the applications of the model are discussed. The impacts of dynamic changes of the project success probability, disconnection time and amount of network punishment on the social reputation loss of borrowers are analysed. Through this study, an innovative calculating method for the loss of social reputation of borrowers who are out of touch on internet financial platforms is given.