Research published by two University of Queensland pupils has revealed that peer-to-peer loan providers are more inclined to accept reduced economic returns they are funding is socially and environmentally responsible if they know the project.
Jason Lejcak (Bachelor of Economics (Honours)) and Benjamin Wiltshire (Bachelor of Commerce (Honours) and Bachelor of Science) co-authored the research included in a research task with UQ’s Australian Institute for company and Economics (AIBE), that has been made thanks that are possible a scholarship supplied by two UQ alumni.
The pair examined data from a popular Australian peer-to-peer lending platform and found that small green loans – averaging around $8000 and used largely for renewable energy projects such as installing rooftop solar – had a 2.1 per cent lower interest rate than a comparable loan used for other purposes as part of the study.
Mr Lejcak stated while green loans comprised a little piece of this lending that is peer-to-peer, they certainly were a fast-growing group of loan demands.
“Peer-to-peer monetary financing platforms offer people and smaller loan providers utilizing the possibility to partake in social impact investing, which will be typically away from scope of banking institutions and larger loan providers, ” he said.
“once you consider the sharing economy, many people consider Uber (transportation) and AirBnB (accommodation), but peer-to-peer financing is a very exciting and competitive area that is checking brand brand brand new and transforming current markets. ”
Mr Wiltshire stated he sooo want to see peer-to-peer platforms follow a social effect metric for loan needs.
“If these platforms could offer peer-to-peer loan providers use of a social impact metric, alongside the now available credit score metrics, we think it might attract a bigger market and improve the financing task on these platforms, ” he said.
“In Australia, the sector continues to be quite tiny and unregulated, even though there’s nevertheless much to explore and comprehend, our research shows applying an impact that is social could replace the game for renewable power lending on peer-to-peer platforms. ”
Mr Lejcak and Mr Wiltshire would be the 2018 recipients associated with the Matthew McLennan and Richard Howes Outstanding Honours Collaboration Scholarship, that has been created in 2014 and encourages teamwork between high-performing honours pupils through the UQ company class and class of Economics.
Mr Wiltshire stated taking care of this revolutionary research that is peer had supplied numerous individual and expert development possibilities.
“Beyond developing our research abilities, i discovered it valuable to achieve contact with various perspectives – from Jason and our scholastic advisors – and discover ways to bring our some ideas, experiences and abilities together to look at and subscribe to the discussion on this pressing issue. ”
Mr Lejcak thanked Mr McLennan and Mr Howes for providing this scholarship that is generous.
“As a pupil, understanding that you have UQ’s strong alumni system available to you prepared and prepared to give you support, that is a really big plus, and also this alumni-funded scholarship is a typical example of that. It’s amazing. ”
Both students graduated from UQ in December 2018 and commenced as worldwide areas Analysts at Citi Bank in Sydney in February 2019.
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