TY - JOUR
T1 - Online or offline?: The rise of "peer-to-peer" lending in microfinance
AU - Johnson, Susan
AU - Arvind, Ashta
AU - Assadi, Djamchid
PY - 2010
Y1 - 2010
N2 - Over the past five years, “peer-to-peer” lending websites have become a new approach to mobilizing funds for on-lending to impoverished people in developing countries (microfinance) and domestic markets. In this paper, the authors review these developments and use the analytical lens of asymmetric information and transactions costs to explain the characteristics of the different models in operation. The authors find that “peer-to-peer” lending is more of an aspiration than a reality. Although web 2.0 technologies have offered new means of mobilizing funds, the borrowing mechanisms at work follow mainstream conventional approaches to the management of lending.
AB - Over the past five years, “peer-to-peer” lending websites have become a new approach to mobilizing funds for on-lending to impoverished people in developing countries (microfinance) and domestic markets. In this paper, the authors review these developments and use the analytical lens of asymmetric information and transactions costs to explain the characteristics of the different models in operation. The authors find that “peer-to-peer” lending is more of an aspiration than a reality. Although web 2.0 technologies have offered new means of mobilizing funds, the borrowing mechanisms at work follow mainstream conventional approaches to the management of lending.
UR - http://www.scopus.com/inward/record.url?scp=77956289701&partnerID=8YFLogxK
UR - http://dx.doi.org/10.4018/jeco.2010070103
U2 - 10.4018/jeco.2010070103
DO - 10.4018/jeco.2010070103
M3 - Article
SN - 1539-2937
VL - 8
SP - 26
EP - 37
JO - Journal of Electronic Commerce in Organisations
JF - Journal of Electronic Commerce in Organisations
IS - 3
ER -
