What Factors Affect the Intention to Borrow Through Peer to Peer Lending in Indonesia?

Abstract

This research aims to investigate various intentions that influence borrowers in using a technology that focuses on the peer-to-peer lending platform as a growing financial services business in Indonesia. We use a survey by distributing online questionnaires and collect data from 183 borrowers through peer-to-peer lending. The linear regression results that have been done show that trust, perceived risk, utilitarian value, and perceived cost have a significant effect on the intention to borrow through peer-to-peer lending whereas ease of use shows insignificant results. The limitations of this study emphasize the first ten peer-to-peer lending companies registered with the OJK. Also, this study consisted of five factors measured against the intention to borrow through peer-to-peer lending.

Keywords: Financial technology, Peer to peer lending, Technology acceptance model, Digital funding, Indonesia

JEL Classification: G02, G23, M12