| dc.description.abstract | Crowdlending is a new form of lending, where platforms act as intermediaries between
borrowers and lenders. The industry is gaining traction across Europe and the US. However,
there has been little research into this field. The purpose of this paper is to analyze the credit
quality of crowdlending borrowers. This is done by applying four internationally recognized
credit scoring models on a sample of crowdlending- and bank borrowers. We analyze
differences between crowdlending- and regular borrowers across these models and the 14
credit ratios they rely upon. We conclude that crowdlending borrowers have lower credit
scores than regular borrowers. Furthermore, crowdlending platforms seem quite good at
avoiding the lowest quality borrowers. Thus, it can be suggested that they deliberately target
a segment of the SME financing market which has been left underbanked, due to credit
rationing and –tightening. The study also give insight into several topics worth investigating
further, as more data becomes available. | nb_NO |
