Are you ready for risk? Lender time preferences and risk attitudes in peer-to-peer lending platforms

Despite the booming FinTech industry, peer-to-peer (P2P) lending platforms continue to play an insignificant role. This study explores differences in time preferences and risk attitudes between P2P lenders and the general public (non-users). The findings indicated that P2P lenders are less risk-averse and have future preferences, indicating that this P2P platform is perceived as a risky instrument. Based on our findings, we recommend that companies reduce the hazard associated with investing with P2P platforms to attract more risk-averse investors or offer higher interest rates for riskier loans to attract investors who prefer higher risk.