Are You Ready for Risk? Lenders' Time Preferences and Risk Attitudes in Peer to Peer Lending Platforms

Despite the booming Fintech industry, Peer-to-Peer (P2P) lending platforms continue to play an insignificant role. This study explores differences in time preferences and risk-attitude between P2P lenders and the general public. The findings indicated that P2P lenders are less risk-averse and have future preferences, indicating that this P2P platform is perceived as a risky instrument. Based on our findings, we recommend that the companies should decrease the hazard in investing with the P2P platforms by ensuring a tighter due-diligence process for the borrowers and ensuring compensation in case of a default