Why do peer-to-peer (P2P) lending platforms fail? The gap between P2P lenders' preferences and the platforms’ intentions

In the current study, we examine why peer-to-peer (P2P) lending platforms play only a minor role in finance industry Israel, compared to traditional banking system. We conducted two studies and attempted discover if discrepancy exists between lenders' preferences platforms’ incentives. first conjoint analysis impact of decisions invest through P2P platforms. The second study examines factors which use determine interest rate for loans. found that although lenders wish decrease their risk guarantee investment, companies encourage riskier borrowers. This contradiction priorities those may explain non-users consider be high risk. offer several suggestions increase attractiveness Fintech industry.