Original scientific paper
https://doi.org/10.1080/1331677X.2021.2013278
Mismatch between investor preferences and financial services/products
Geran Tian
Weixing Wu
Abstract
In a major peer-to-peer (P.2.P.) lending market in China, we
observe that some investors choose not to use auto-investment
service and stick to time-consuming manual investment. By analysing over 200 million pieces of data, we find that the do-it-yourself (D.I.Y.) investors pursue 1.20% higher annual return and five
to seven months shorter maturity than the auto-investment service can offer. Indeed, D.I.Y. investors obtained 1.25% higher
return than auto-investors, but they also took excessive risk.
These results are confirmed by dual investors sample, who switch
between D.I.Y. and auto-investment services. We also show that
the results are not due to algorithm priority. We suggest that
financial institutions provide more personalized services and products to accommodate investors with various target returns and
risk attitudes.
Keywords
peer-to-peer lending (P.2.P.); investor behaviour; financial service; financial participation
Hrčak ID:
302709
URI
Publication date:
31.3.2023.
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