Huang, J., Li, J. and Sena, V. (2026) The effect of Peer-to-Peer lending on financial exclusion: Evidence from China. In: Li, J., Zhang, Y., Zhang, T. and Qu, J., (eds.) De Gruyter Handbook of Chinese Entrepreneurship. De Gruyter Handbooks in Business, Economics and Finance . De Gruyter Brill ISBN 9783111298498
Abstract
The association of financial technology (fintech) and financial exclusion has attracted attention since rapid growth of fintech innovation. This study investigates the funding probability of the financial excluded borrower in a large P2P lending platform. Using loanlevel data from a lending Chinese P2P company, we find there is a negative indirect effect of financial exclusion on funding success through credit score. In a moderated mediation analysis, we also find new business model such as offline authentication and education qualification positively moderates the linkage between the financial excluded and credit score and therefore negative indirect effect of financial exclusion on funding success is overturned when the excluded borrower has conducted offline authentication and obtained higher education qualification. Lastly, we examine the determinants of offline authentication decision. We find the borrowers in a city with better financial infrastructure are more willing to conduct authentication. However, the financial excluded borrowers are less likely to conduct offline authentication.
Metadata
Item Type: | Book Section |
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Authors/Creators: |
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Editors: |
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Copyright, Publisher and Additional Information: | © 2026 De Gruyter. This is an author-produced version of a chapter subsequently published in De Gruyter Handbook of Chinese Entrepreneurship. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Peer-to-Peer lending; financial exclusion; financial technology; China |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Funding Information: | Funder Grant number UK Research and Innovation ES/Z50239X/1 |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 16 May 2025 14:42 |
Last Modified: | 16 May 2025 14:47 |
Published Version: | https://www.degruyterbrill.com/document/isbn/97831... |
Status: | Published |
Publisher: | De Gruyter Brill |
Series Name: | De Gruyter Handbooks in Business, Economics and Finance |
Refereed: | Yes |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:226224 |
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Filename: Chapter 24 .pdf
