Determinants of Successful Lending Decision for Ultra-Micro Segment in P2P Lending Platform

DOI

10.2991/icoi-19.2019.30How to use a DOI?

Keywords

Lending Decision, Ultra-Micro Segments, Peer-to-Peer Lending Platform

Abstract

A new alternative form of loan services, known as Peer-to-Peer Lending (P2P lending), is growing rapidly in Indonesia. The purpose of this research is to analyze all factors that influence lending decision for ultra-micro segment on P2P platform in Indonesia. As a quantitative research, primary data were collected through questionnaire. Validity and reliability test were measured using Confirmatory Factors Analysis (CFA) and logistic regression. The independent variables, which consisted of transaction cost, safety protection, information quality, social capital, loanable fund, service quality, repayment period, and interest rate, were analyzed to know their influences towards lending decision in a P2P lending platform. The result of the research showed that transaction cost, safety protection, and interest rate had significant and positive effect. Loanable funds had a negative effect while service quality, information quality, social capital, and repayment period had no effect towards lenders lending decision in P2P lending platforms in Indonesia.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Florentina Kurniasari
AU  - Johny Natu Prihanto
PY  - 2019/10
DA  - 2019/10
TI  - Determinants of Successful Lending Decision for Ultra-Micro Segment in P2P Lending Platform
BT  - Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019)
PB  - Atlantis Press
SP  - 169
EP  - 173
SN  - 2352-5428
UR  - https://doi.org/10.2991/icoi-19.2019.30
DO  - 10.2991/icoi-19.2019.30
ID  - Kurniasari2019/10
ER  -