Risk-Return modelling in the P2P lending market: Trends, Gaps, Recommendations and future directions

Abstract

The proposal for new financial products has been accompanied by new tools for risk management and profit in the Peer-to-Peer (P2P) lending market, one market in evolution, as an alternative for traditional investment and financing. For understanding this development, a systematic literature review and a bibliometric analysis of 104 papers published in the Web of Science database in the last decade are carried out using Scimat software. Our aim is to identify methodological elements, modelling components, analysis of variables and business aspects that generate opportunities for deepening its development and application. Developments of algorithms of artificial intelligence (AI) and machine learning (ML) support most of new proposals. Regulators, supervisors and users tend to increasingly seek these new alternatives in a natural project of financial digitalization demanded by technological advances, innovation and market development. Based on this study, recommendations in future research directions are provided for researchers.