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Evaluating credit default risk in P2P lending: a market maturity perspective

Bibliographic Details
Main Author: Fialho, Rita Serras Celorico da Silva
Publication Date: 2022
Format: Master thesis
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: http://hdl.handle.net/10362/135544
Summary: Dissertation presented as the partial requirement for obtaining a Master's degree in Statistics and Information Management, specialization in Information Analysis and Management
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network_name_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
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spelling Evaluating credit default risk in P2P lending: a market maturity perspectiveCredit RiskCredit DefaultDefault RiskP2P LendingLending ClubLogistic RegressionData AnalysisDeterminants of DefaultDissertation presented as the partial requirement for obtaining a Master's degree in Statistics and Information Management, specialization in Information Analysis and ManagementThe Peer-to-Peer (P2P) lending industry has grown significantly in recent years, owing its traction to a growing interest in the market from both individual borrowers and lenders alike. Such platforms have greatly benefited from the advent of digital transformation and expanding internet footprint across people of all ages and backgrounds. These platforms leverage novel ways of interacting to facilitate an alternative means of financing which provides more opportunities to borrowers who may, otherwise not have access to debt through conventional mechanisms, and more investment opportunities to lenders who may be seeking to diversify their portfolios. This study leverages a dataset made available by the Lending Club P2P lending platform, containing more than 2 million loan entries, amassed over more than 10 years. Being a pioneer in the industry, Lending Club’s track record and data provide a good window into the inner workings of such platforms and their ability to assess the creditworthiness of borrowers and loan applications. We set out to build upon prior work done in this space by understanding and analyzing this dataset to identify the determinants of default of loans issued through P2P lending platforms. Our analysis is also employed to create a predictive model which is then tested against our dataset. This approach builds upon previous studies by outlining an end-to-end process to analyze and assess a platform’s ability to adequately predict credit default risk. We have found that, in alignment with prior work, such platforms are indeed able to adequately assess credit default risk, in the way that grades are assigned to individual loans. The logistic regression model which we have built has also yielded good results in predicting defaulted loans, while exhibiting mediocre performance in classifying fully repaid loans as likely cases of default.Bravo, Jorge Miguel VenturaRUNFialho, Rita Serras Celorico da Silva2022-03-30T15:30:46Z2022-02-282022-02-28T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10362/135544TID:202979091enginfo:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2024-05-22T18:00:45Zoai:run.unl.pt:10362/135544Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-28T17:31:49.502104Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv Evaluating credit default risk in P2P lending: a market maturity perspective
title Evaluating credit default risk in P2P lending: a market maturity perspective
spellingShingle Evaluating credit default risk in P2P lending: a market maturity perspective
Fialho, Rita Serras Celorico da Silva
Credit Risk
Credit Default
Default Risk
P2P Lending
Lending Club
Logistic Regression
Data Analysis
Determinants of Default
title_short Evaluating credit default risk in P2P lending: a market maturity perspective
title_full Evaluating credit default risk in P2P lending: a market maturity perspective
title_fullStr Evaluating credit default risk in P2P lending: a market maturity perspective
title_full_unstemmed Evaluating credit default risk in P2P lending: a market maturity perspective
title_sort Evaluating credit default risk in P2P lending: a market maturity perspective
author Fialho, Rita Serras Celorico da Silva
author_facet Fialho, Rita Serras Celorico da Silva
author_role author
dc.contributor.none.fl_str_mv Bravo, Jorge Miguel Ventura
RUN
dc.contributor.author.fl_str_mv Fialho, Rita Serras Celorico da Silva
dc.subject.por.fl_str_mv Credit Risk
Credit Default
Default Risk
P2P Lending
Lending Club
Logistic Regression
Data Analysis
Determinants of Default
topic Credit Risk
Credit Default
Default Risk
P2P Lending
Lending Club
Logistic Regression
Data Analysis
Determinants of Default
description Dissertation presented as the partial requirement for obtaining a Master's degree in Statistics and Information Management, specialization in Information Analysis and Management
publishDate 2022
dc.date.none.fl_str_mv 2022-03-30T15:30:46Z
2022-02-28
2022-02-28T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/masterThesis
format masterThesis
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/135544
TID:202979091
url http://hdl.handle.net/10362/135544
identifier_str_mv TID:202979091
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
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