Financial socialization, strength of social ties and investment literacy of investors in peer-to-peer (P2P) lending platforms

This study explores survey data of investors in peer-to-peer (P2P) lending aiming to assess their investment literacy, how this literacy is affected by financial socialization and the strength social ties, whether effect differs among investors’ sociodemographic groups. Our research model was built based on Gudmunson Danes (2011), et al. (2016) Potrich (2016). It measured assessing three components — knowledge, skills attitudes; included multiple agents; investigated both direct indirect effects socialization. Descriptive reliability analysis, confirmatory factor analysis (CFA), t-tests, variance (ANOVA) second-order structural equation modeling (SEM) were employed. The results indicate that P2P high. compound overall level found be positive stronger than its individual components. Although ties had a strong influence socialization, rather weak. Peers proved main agent exhibited strongest with respondents. identified for 18–34 years group working sector net monthly income below 1500 euros. contributes existing literature providing methodology valuable insights into or not formed under interaction close environment.