Personal Credit Risk Evaluation Model of P2P Online Lending Based on AHP

Abstract

With the rapid development of the P2P (peer-to-peer) online lending industry, which is facing significant credit risk, personal credit evaluation is an important method to reduce credit risk. Based on the various indexes of personal credit risk evaluation of domestic and foreign commercial banks, and according to the characteristics of P2P online lending, this paper analyzes the factors that affect the credit risk of P2P online borrowers, introduces the unique risk factors in the field of Internet information, and constructs an index system of personal credit risk evaluation of P2P online lending, which combines qualitative and quantitative indexes, including six major indexes and 21 small indexes. It then quantifies each index and defines the judgment standard of the evaluation results. Using analytic hierarchy process (AHP), expert scoring method, and fuzzy comprehensive evaluation method, this paper establishes a personal credit risk evaluation model of P2P online lending based on AHP method. The public information of two borrowers on the “PaiPai Lending” platform are selected for experimental verification. The results show that the improved personal credit risk evaluation model has better applicability and can evaluate the borrower’s credit status more scientifically, accurately, and comprehensively; thus, it is an effective method of personal credit risk evaluation of P2P online lending.