The analysis of overdue loans on crowdfunding platform Mintos

Abstract

Crowdfunding is a rapidly growing method for fundraising. It is an alternative for traditional financial sources. Technological innovations have determined bigger possibilities for online sponsorship. Constantly improving processes and growing popularity of the co-financing platform open new opportunities for investors and debtors. However it is one of the areas which is increasingly getting more and more attention, but platforms, granted loans and the number of overdue loans in them are not enough analysed. Also, the scientific literature pays little attention is given for the analysis of platform ratings and their evaluation, even though it is one of the main focuses which give information about a loan’s risk and a debtor himself/herself. This paper will try to find out which loans are the most popular, what ratings are given for them considering the factors that describe a debtor and of what rating are the loans of the most overdue. It will determine whether the ratings assignment system of a platform is effective and helpful in order to assess the risk for investors. Also, a lot of attention has been paid to the description of crowdfunding and causes resulting in the secondary market.