Competitive environment assessment in the Р2Р-credit market

Honcharenko Anastasiia
Postgraduate Student, Department of Banking, Odessa National Economic University, e-mail: ovsanikn@gmail.com

Cite this article:

Honcharenko A. Competitive environment assessment in the Р2Р-credit market. Scientific Bulletin of the Odessa National Economic University. 2020. № 1-2 (274-275). pp. 93-104.

Abstract

Object of study. The object of the study is the market of credit services which are carried out using peer-to-peer (P2P) technology. Given the innovative nature of this activity, one of the most problematic areas is the lack of development to quantify the scale of the threat from new entrants to the credit market. Methodology. The information base of the research have been scientific publications and reports of international organizations on the problems of finding resources and the implementation of P2P-lending, as well as statistics of Internet resources on the volume of FinTech-firms in certain market segments. The following research methods have been used: scientific abstraction, induction and deduction, analysis and synthesis (when specifying the categorical apparatus of research and determining the object of analysis); calculation of market concentration indicators (when assessing the competitive environment of the P2P lending industry). Results. Based on theoretical generalizations, the definition of Fintech P2P-lending has been proposed as well as the main business models of its implementation have been described in the article. The competitive environment in the P2P-lending market such as a high level of market concentration has been assessed as well as focus of Fintech-firms on certain segments and differentiation of credit products have been established. The scope of activity of traditional banks (on the example of CitiGroup) and electronic credit platforms has been compared. The competitive advantages of banks and Fintech-firms have been determined. The necessity of cooperation of the main participants of the financial services market has been proved. Scientific novelty. The scientific and methodological approaches to assessing the concentration and competition in the market of P2P lending have been improved in the article. Theoretical and practical significance. The practical significance of the study is to develop recommendations for further cooperation between traditional banks and Fintech companies. The implementation of the formulated proposals will contribute to the development of the most optimal forms of cooperation between banks and Fintech companies.

Keywords

bank, competition, concentration, competitive environment, loan, financial technologies, P2P-lending.

JEL classification: E590; G210

УДК: 336.77.009.12

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