The Study Of Peer-to-Peer Lending In US

In twenty-first century, online financial service is changing the world. In recent years, the new financial platform P2 P lending as a different model comparing to the traditional financial services, has been developed rapidly in the world. Although the P2 P lending was born in Britain, it started to grow in the United States, and became the world’s leading financial industry. In 2007 Lending Club joined the online financial market, after several years of development and operation, now it has gradually become the biggest P2 P network lending company in the United States and the largest in the whole world. It occupies the major market share in America. The United States has gathered the world’s most active manpower, material resources and financial capacity. It has provided the most creative environment for innovation possibilities, and its mature economic system and credit system offer a powerful impetus for the development of financial innovation. Even though, the overall financial system in USA is well developed and the main financial market services are diversified, but high credit card interest rates as well as the 2008 financial crisis cause the high demand of personal finance cannot be met. Thus, it provides an extensive area for developing P2 P lending in United States. The growth of P2 P lending has injected new vitality to the American credit market, meets the diversified needs of personal finance, at the same time it creates a new way for the financing of small or medium-sized enterprises.The first Chinese domestic P2 P loan company-- PPDAI was officially registered in 2007, and it marked the P2 P industry officially started in China. Following PPDAI’s footsteps, a number of loan platforms established and they made the online financial industry gradually prosperous. During the development of Chinese P2 P loan,many problems started uncover, and one of the reasons is the occurrence of a large number of risk events. According to incomplete statistics, as of the end of 2015, there are more than one thousand platforms present problems like lack of financial strength and risk management, financial fraud and many platform "runaway’s” occurredfrequently. Now the regulation on the domestic microfinance industry is in the early stage, dragons and fishes jumbled together, the laws and regulations need to be further consummated accordingly.This thesis introduces the development model and the overall structure of the P2 P lending platform, explains the background of P2 P lending and its development process, analyzes its operation model and how the American regulation authorities monitor and control its development. In addition, this thesis summarizes the characteristics of P2 P lending and the related factors promoting the rapid development of the United States, and examines the problems exist in the current American P2 P lending development. Through the analysis of advantages and drawbacks of P2 P lending development in the United States, explore the suitable ways for the developing P2 P network lending in China.