Business models in the lending-based crowdfunding industry

In recent years, lending-based crowdfunding (LBCF) has been analysed from different perspectives but there has been little discussion about the strategies and business models adopted by LBCF companies. The aim of this study is to define a more correct classification of LBCF companies, based on their business models. We find that the existing classification can be improved by simultaneously considering strategic choices concerning target customers (borrowers and lenders), intermediation model and additional risk management services provided by platforms. We analyse an original worldwide sample of 30 LBCF companies and use a clustering algorithm to group them on the basis of financial and commercial fundamentals to identify four business models denoted by strategies, financial services, risk positions and customer target.