UNRAVELLING THE DIVERGENT EFFECTS OF PLATFORM INTEREST RATES IN P2P LENDING: A SEGREGATION APPROACH

This article explores the impact of platform interest rates on financing types of peer-to-peer (P2P) lending over both long- and short-term durations. The study examines whether platform interest rates play a pivotal role in shaping the financing preferences of participants in the segregation of invoices and microfinancing. By employing autoregressive distributed lag analysis on data from 2017 to 2022, the study reveals compelling mixed evidence. The results indicate a significant influence of platform interest rates on the segregation of financing types in microfinancing. However, an insignificant influence was detected for invoice financing in both time frames. These findings underscore the short and long-term context of the P2P product offered. The study contributes valuable insights into the intricate interplay between platform interest rates and diverse financing choices, enhancing the understanding of P2P market players among fintech lending platforms.