•  
  •  
 

AIS Transactions on Human-Computer Interaction

Abstract

The inability to assess borrowers' default behavior severely threatens the development of micro-lending platforms. Call activity and online social activity, as important components of soft information, have great potential for assessing borrowers’ default risk. Although a wealth of literature on microfinance explores the relationship between borrowers' call activity and default behavior, few studies have focused on borrowers' online social activity and combined the two types of information to assess their default risk. This study explores the impact of borrowers' call activity (call activity frequency and call activity stability) and online social activity (online social activity frequency and online social activity stability) on the default behavior of borrowers on micro-lending platforms based on bonding and bridging capital in social capital theory. We collected 154,579 loan records from 10 micro-lending platforms in Indonesia as research data, constructed an empirical research model to verify our hypotheses, and used multiple robustness tests to demonstrate the consistency of the results. The empirical results show that call activity frequency and call activity stability have a significant negative impact on default behavior. In contrast, online social activity frequency and online social activity stability have a significant positive impact on default risk. Our results not only contribute to social capital theory and relevant research on microfinance but also provide practical insights for improving the credit assessment model of micro- lending platforms.

DOI

10.17705/1thci.00234

Download

Share

COinS
 

When commenting on articles, please be friendly, welcoming, respectful and abide by the AIS eLibrary Discussion Thread Code of Conduct posted here.