P2p Lending and Banking in Indonesia: Brothers or Competitors?

Abstract

This paper explores the relationship between the peer-to-peer (P2P) lending industry and the traditional banking sector in Indonesia. Through a detailed analysis of non-performing loan (NPL) ratios and growth rates in the P2P lending industry and various metrics in the banking sector, we aim to shed light on the interplay between these two financial entities. As some findings (Tang, 2019) explore whether P2P lenders and banks act as substitutes (i.e., they compete for the same customers and resources) or complements (i.e., they benefit each other and can coexist in the financial ecosystem).

Keywords: P2P lending Banking Indonesia. Cluster Analysis