P2P Lending’s Credit Risk in Vietnam: Determinants and Discussions

• DOI: 10.47191/jefms/v5-i4-18
• Publication Date: 2022-04-18T09:07:36Z
• Authors: Do Hoai Linh
• Keywords: 0502 economics and business; 05 social sciences; 1. No poverty; information technology, lending (P2P) model,lending risk

The recent upsurge in information technology has created the automation of processes and the reorganization of the chain of financial business area. In a new trend technology application, peer-to-peer lending (P2P) model, a service that connects individuals to borrow and lend money is adopted by the new online platform along with advanced technology systems and many different purposes. Hence, this research explores the situation and draws on possible potential causes of peer-to-peer lending risk. The questionnaire surveys were launched in December of 2021 with arepresentative sample consisted of 205 participants, including the majority of Vietnamese who had stable incomes in major cities of domestic nation and some others abroad as well as in-depth interviews also took place with persons who have a clear understanding of peer-to-peer lending and its risks. Based on findings, some recommendations were proposed to reduce risk of a new form of credit provision.