Sandeep Shivam 03 05 Peertopeer P2P lending is another important financial technology FinTech innovation which has helped to connect the two parties borrowers and lenders using online platforms without an intermediary between them a financial institution This is because such platforms enable unsecured lending as borrowers can take loans and investors can finance them based on their risk and return preferences P2P lending has been experiencing a blistering evolution due to the digital transformation phenomenon the need to seek alternative funding and the adoption of new and effective technologies including artificial intelligence AI machine learning ML and blockchain Nevertheless efficient credit risk analysis is one of the biggest issues associated with the sustainability of platforms and assists in decreasing the loan default rate Older credit scoring models are often based on a very thin financial history and do not capture dynamic borrower behaviour and are therefore not believed to be applicable to the new digital borrowing markets FinTech solutions address such limitations with alternative data predictive analytics and automated decisionmaking systems The AIbased methods to optimize credit assessment fraud detection and dynamic risk profiling include random forests gradient boosting neural networks and natural language processing Another way these technologies drive financial inclusion is by empowering underserved individuals and small enterprises to access credit via digital lending ecosystems Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026