Peer-to-Peer Lending Performance Improvement: Learn from Lean Principles

  •  Mousumi Munmun    
  •  Dongli Zhang    
  •  Charles C. Luo    


While experiencing robust growth in recent years, Peer-to-Peer (P2P) lending still faces the serious challenge of a high default rate. This study argues that it is beneficial to analyze P2P lending from a process improvement perspective. Adopting an integrative literature review method, this study identifies and summarizes the characteristics of P2P lending and then maps them to the fundamental lean attributes. Furthermore, this research proposes detailed application suggestions for reducing loan default rates in terms of understanding customer needs, value stream, information flow, pull approach, and continuous improvement. As an early attempt, mapping P2P lending characteristics and lean principles allows P2P lending to learn the well-established quality improvement practices from lean management. This study contributes to both P2P lending performance improvement and applications of lean management.

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