Understanding the implications of FinTech Peer-to-Peer (P2P) lending during the COVID-19 pandemic

This study examines the impact of the COVID-19 pandemic on the determinants of FinTech Peer-to-Peer (P2P) lending. The issue is significant because P2P lending platforms have attracted borrowers with little to no access to the credit facilities offered by conventional banks during the pandemic. Although many banks and financial institutions have offered online loan application services during the COVID-19 pandemic, few have developed verification of loan applications submitted online. The results of this study show that the COVID-19 has brought a drastic change in the key determinants of P2P lending. The results imply that FinTech P2P lending has become the most viable alternative credit option available to borrowers. The findings are significant and likely to be of interest to borrowers, investors, practitioners, academics, and policymakers because they highlight the usefulness of P2P lending platforms and their potential to augment or replace lending provided by traditional or conventional banking institutions.