Blockchain and Business Model Innovation: Designing a P2P Mortgage Lending System

37 Pages Posted: 30 May 2019

See all articles by Ricardo Henriquez

Ricardo Henriquez

EAE Business School

itai cohen

affiliation not provided to SSRN

Netanel Bittan

affiliation not provided to SSRN

Kanat Tulbassiyev

affiliation not provided to SSRN

Date Written: April 14, 2019

Abstract

This paper explores P2P lending in the context of mortgage financing. While P2P lending has gained considerable traction in the consumer loan segment, it remains absent for the economically and socially important mortgage sector. Following a design research approach (most specifically, Action Design Research), the paper defines a series of questions about how a sound business model would make P2P mortgage lending feasible from a technical and business perspective. In order to provide an initial answer, a model is developed by providing a theoretical explanation and a partial formalization in Business Process Modelling and Notation (BPMN). The business model introduces artificial intelligence, blockchain/smart contracts and Business-Process-as-a-Service (BPaaS) as its main features. A preliminary evaluation of the model’s feasibility and effectiveness is offered, as a way of providing an initial prescriptive theory on a subject (P2P mortgage lending) where academic studies and business applications are basically absent.

Keywords: P2P Lending, Crowdlending, Mortgages, Business Model Innovation, Blockchain, Smart Contracts, Artificial Intelligence, BPaaS

JEL Classification: G21, G23

Suggested Citation

Henriquez, Ricardo and cohen, itai and Bittan, Netanel and Tulbassiyev, Kanat, Blockchain and Business Model Innovation: Designing a P2P Mortgage Lending System (April 14, 2019). Available at SSRN: https://ssrn.com/abstract=3371850 or http://dx.doi.org/10.2139/ssrn.3371850

Ricardo Henriquez (Contact Author)

EAE Business School ( email )

C/ Menéndez Pidal 43
Madrid, 28036
Spain

Itai Cohen

affiliation not provided to SSRN

Netanel Bittan

affiliation not provided to SSRN

Kanat Tulbassiyev

affiliation not provided to SSRN

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