Borrowing Money Matching Model Research in the P2P Platform.

We investigate the profit maximization of P2P online lending platform. We construct a stochastic model to study the fund matching between fund-raisers and investors in a P2P platform. The raising time is assumed to be a random variable, then there is a successful transaction probability that the fund matching is realized. Meanwhile, the interest and the commission rate that the platform earns affects the value of the probability. The platform maximize its revenue by adjusting the commission rate. We find that the optimal commission rate increases in the probability of borrower default, but decreases in the loan duration. The platform should choose some small loans as far as possible. The loans with smaller amount are easier for the platform to complete fund raising.