A study on choosing network lending platforms by grey clustering method based on the sight of investors

Abstract

In recent years, network lending platforms grow explosively. The number of network lending platforms is above 500, which has become a financing measure. Based on 20 network lending companies from www.wangdaizhijia.com, this paper constructs a clustering index system with nine indicators including returns, liquidity and popularity. And the investors can make rational choice when they know the level of every platform by gray clustering method. We can find that, Lufax.com is the best choice for investors under the guarantee way of Financing Guarantee Corporation; Jimubox.com, Yirendai.com, and Hongling Capital are good choices under the guarantee method of risk reserve. Finally, the paper puts forward some suggestions for the investors and the network lending platform.