The Value of "New" and "Old" Intermediation in Online Debt Crowdfunding

The Value of "New" and "Old" Intermediation in Online Debt Crowdfunding

Fabio Braggion, Alberto Manconi, Nicola Pavanini, Haikun Zhu

Series number :

Serial Number: 

Date posted :

January 05 2021

Last revised :

January 05 2021
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  • Marketplace credit • 
  • Chinese financial system • 
  • structural estimation

We study the welfare effects of the transition of online debt crowdfunding from the older “peer-to-peer” model to the “marketplace” model, where the crowdfunding platform sells diversified loan portfolios to investors. We develop an equilibrium model of debt crowdfunding and estimate it on a novel database from a large Chinese platform.

Moving from the peer-to-peer to the marketplace model raises lender surplus, platform profits, and credit provision. Moreover, reducing lender exposure to liquidity risk can be beneficial. A counterfactual where the platform resembles a bank by bearing liquidity risk generates larger lender surplus and credit provision when liquidity is low.


Real name:
Alberto Manconi
Real name:
Nicola Pavanini
Real name:
Haikun Zhu