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- Summary of The Annual Bulletin
- Departure from “Social” Lending －The Case of Prosper.com－
Departure from “Social” Lending －The Case of Prosper.com－
Nanae Fujiwara
Chiba University of Commerce
This Paper investigates the change the business model inP2P Lending.The
new financial services allow individuals to lend money to other individuals.P2P
Lending Services that are called “Social Lending” in Japan have become
popular on all over the worldin the past several years. Success of Grameen
Bank and the widespread use of SNS may have reinforced the developing the
newfinancial services. In the early stages, P2P Lending services emphasized
“Social” aspect. They allowedpeople who have bad credit scoretoborrow money
on the services. Because they believed Social capital on SNS reduce asymmetry
of information and mitigate moral hazard.But they noticed their attempts
have failed and they have changed their business models.Analyzing the change
in policy of Prosper.com, this paper indicates the causes of failure in
P2P lending services.
