Research On Internet Financial Discrimination Based On Cities Perspective

The P2P lending offers lower cost than the private lending,and more convenient service than the bank,which reduces the threshold for borrowers and disperses the risk of lenders.It has built cross-regional and free investment relationship between those who are in financial needs and the small micro-enterprises as well as the investors.The P2P lending,which based on private loans,becomes the first choice for those who are in financial needs and occupies the majority of the credit market.Due to the differences in consumption concept,lifestyles,values and income level,it brings in regional discrimination,which mainly reflected in the income of the city,the educational background,credits and the loan amounts of borrowers etc.will influence the different success rate of borrowing in cities.Based on the current situation of the P2P lending,this paper uses the transaction date of peer-to-peer lending of 2015,and divides borrowers into two parts based on the degree of city development.The one is more developed cities(first-tier city and second-tier city),Another is less developed city(third-tier city,fourth-tier city and below).This paper wields the Logit regression to explore the relationship between the basic information of borrowers、lending information with the success rate of lending,which gets the specific reasons of how the regional discrimination effects the lending success rate.This paper utilizes the Oaxaca-Blinder decomposition that based on logit regression to further study the influence degree of factors that regional discrimination causes the differences of the success rate of borrowing factors,and make heterogeneity analysis on lending that classified according to the lending purpose and the type of work.The Empirical studies show that,borrower’s credit and identity information is the major factor of the differences in the Success Rate of loans from underdeveloped cities and developed cities.And compared with the more developed cities,the borrower of underdeveloped cities is paid more attention by investors;The higher the degree of cities economic development,the higher the success rate of borrowing,expressed in the purpose of borrowing and work category.Based on the studies,the following suggestions are listed:(1)To ensure the authenticity of the borrower’s information and improve the quality of information,inserting the personal credit registry system in central bank into the P2P lending platform,will inevitably easy the issue of discrimination between underdeveloped cities and developed cities and reduce the degree of geographical discrimination.(2)The borrower of underdeveloped cities should complete their personal basic information and focus on improving their personal identity and credit information and other information quality.(3)The P2P internet lending platform should increase the green channel for loan,which is purposed to invest in business,to improve the success rate of investment.(4)The borrowers should loan rationally to reduce the risk of default.be reasonable.The research of this paper innovatively analyzes the factors of regional discrimination of borrowers and the main factors that lead to the difference of success rate of borrowing,which enriches the research on the discrimination of P2P network loan.