| Summary: | Numerous applications of AI are found in the banking sector. Starting from the front-office,
enhancing customer recognition and personalized services, continuing in the middle-office
with automated fraud-detection systems, ending with the back-office and internal processes
automatization. In this paper we provide comprehensive information on the phenomenon of
peer-to-peer lending in the modern view of alternative finance and crowdfunding from several
perspectives. The aim of this research is to explore the phenomenon of peer-to-peer lending
market model. We apply and check the suitability and effectiveness of credit scorecards in the
marketplace lending along with determining the appropriate cut-off point.
We conducted this research by exploring recent studies and open-source data on marketplace
lending. The scorecard development is based on the P2P loans open dataset that contains
repayments record along with both hard and soft features of each loan. The quantitative part
consists in applying a machine learning algorithm in building a credit scorecard, namely logistic
regression.
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