Publication Type
Conference Proceeding Article
Version
publishedVersion
Publication Date
6-2015
Abstract
Is the interest-free crowdfunding platform a promising alternative to the non-zero interest platform? This study investigates the lenders and borrowers’ incentives and choices between an indirect, non-zero interest rate platform intermediated by a field partner and a direct-lending, interest-free platform. We model the field partner as a profit maximizer that filters qualified borrowers to enable the lenders’ capital to be better utilized on the crowdfunding platform. We show that, under certain conditions, both the borrowers and lenders are better off from the existence of the field partner. The existence of field partner is necessary to effectively segment the market and improve social welfare.
Keywords
Crowdfunding, Kiva, Kiva Zip, Intermediary, Field Partner
Discipline
Databases and Information Systems
Research Areas
Information Systems and Management
Publication
Proceedings of the 9th China Summer Workshop on Information Management (CSWIM): Hefei, June 27-28, 2015
First Page
318
Last Page
323
Publisher
CSWIM
City or Country
Hefei, China
Citation
GE, Ling and GUO, Zhiling.
The Role of Intermediary in Sustainable Lending: An Economic Analysis of Crowdfunding Platform. (2015). Proceedings of the 9th China Summer Workshop on Information Management (CSWIM): Hefei, June 27-28, 2015. 318-323.
Available at: https://ink.library.smu.edu.sg/sis_research/2929
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.