Fintech Credit Platforms’ Perceived Risk Facets and Factors : A Systematic Literature Review

This study examines the financial technology (or FinTech) credit platform literature published between 2017 and 2022, as collected from the Scopus database. It follows the categorization of Imerman and Fabozzi, Lee and Shin, and Reiners for FinTech and credit platforms. In addition, this study follows the perceived risk classifications of Abramova and Bohme, Featherman and Pavlou, and Ryu. The significance of this study stems from the need for a comprehensive analysis of all FinTech credit platform types, their problems, and the gaps in the existing literature to guide future research. Therefore, this study focuses on the vertical business models of FinTech and its credit platforms. In doing so, it clarifies the relationships between perceived risk facets that could impact FinTech credit platforms, identifies the causes of perceived risks, and compiles all proposed solutions to mitigate perceived risks from previous studies. In addition, the format and methodology of this study adhere to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) declaration, which includes four phases and a checklist of twenty-seven items. Using thirteen keywords, 1147 publications were collected from the Scopus database, from which 123 papers fitted the PRISMA procedure employed for this study. This survey determined peer-to-peer lending and crowdfunding platforms to be the most popular platforms. Financial, operational, legal, security, and overall risks were determined to be the five most prominent aspects of perceived risk. The default risk factor appeared as the largest contributor to financial and other interrelated hazards among the risk factors. Thus, this work makes several significant contributions. It aids regulators in formulating laws and policies to manage, monitor, and control the FinTech industry. It provides useful insight to lenders and investors, particularly in assisting them to obtain clearer feasibility for investment into such platforms by defining potential perceived risks and their factors. In conclusion, it guides scholars in the pursuit of future investigations