Blockchain and Business Model Innovation: Designing a P2P Mortgage Lending System
37 Pages Posted: 30 May 2019
Date Written: April 14, 2019
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: Suggested Citation