2020
DOI: 10.3846/btp.2020.11171
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Abstract: Peer to peer (P2P) lending in Indonesia has been growing rapidly, therefore there is the potential for disruptive innovation processes in the financial sector. The aim of this study is to examine the impact of the growth of P2P lending on the growth of bank lending for micro, small and medium enterprises (MSME) and Non-MSME debtors. Separating the scale of the debtor is important, given the initial process of disruptive innovation of reaching areas that are not the incumbent’s main target. The examination was … Show more

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Cited by 7 publications
(10 citation statements)
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“…In the financial industry, peer-to-peer lending has a largerly complementary role with banks because peer-to-peer lending can cover the market share of risky credit and borrowers who do not have collateral that banks cannot reach ( Milne and Parboteeah, 2016 ; Kohardinata et al., 2020b ). Moreover, banks and peer-to-peer lending can also collaborate in providing loans where banks can act as institutional lenders who channel their loans to potential lenders through peer-to-peer lending platforms ( Kohardinata et al., 2020a ). Thus, there is no possibility that the role of banks in funding distribution will decrease significantly.…”
Section: Discussionmentioning
confidence: 99%
“…In the financial industry, peer-to-peer lending has a largerly complementary role with banks because peer-to-peer lending can cover the market share of risky credit and borrowers who do not have collateral that banks cannot reach ( Milne and Parboteeah, 2016 ; Kohardinata et al., 2020b ). Moreover, banks and peer-to-peer lending can also collaborate in providing loans where banks can act as institutional lenders who channel their loans to potential lenders through peer-to-peer lending platforms ( Kohardinata et al., 2020a ). Thus, there is no possibility that the role of banks in funding distribution will decrease significantly.…”
Section: Discussionmentioning
confidence: 99%
“…The loan process, loan costs, interest, loan amount, and loan flexibility affect SMEs to get loan funds ( Rosavina et al., 2019 ). However, gaps exist where the research results by Kohardinata et al. (2020) show that P2P lending growth in Indonesia does not significantly affect bank credit growth.…”
Section: Literature Reviewmentioning
confidence: 98%
“…This happens because the platform enters the competition through a less attractive market to the public. After all, it is still in the process of developing product and service quality ( Kohardinata et al., 2020 ). Several adoption models emerged and saw that the perceived benefits were an important and significant factor affecting adoption.…”
Section: Literature Reviewmentioning
confidence: 99%
“…The implication is clear: P2P lending firms should emphasize the many benefits and features that would entice borrowers to utilize their service. For instance, they can focus on how P2P lending services could reduce time and place barriers in performing financial transactions (Nuryakin et al, 2019), replace traditional banks to borrow money for the unbanked due to their more lenient requirements (Kohardinata et al, 2020), provide borrowers with the most competitive interest rate, loan tenor, as well as limit compared to other financing alternatives (Ghazali et al, 2019), process and approve the loan requests a lot faster than competitors (Pohan et al, 2020), among others.…”
Section: Managerial Implicationsmentioning
confidence: 99%
“…Specifically, the exogenous construct could indirectly influence the IS adoption through perceived usefulness as the mediator since the direct path is not significant. In this regard, P2P lending firms should provide the structural assurance that many borrowers are concerned about, including the lack of consumer protection, privacy concerns regarding personal information (Abubakar & Handayani, 2018), the enactment of proper regulation of FinTech and P2P lending by the Financial Services Authority/OJK (Anugerah & Indriani, 2018) and comprehensive enforcement of said regulation to ensure that there are no misconducts attempted by P2P lending firms (Kohardinata et al, 2020), the sweeping eradication of illegal P2P lending players (Hidajat, 2019;Sitompul, 2019), and many more. Proper structural assurance could also ensure that borrowers are not caught in the vicious cycle of having to apply for loans with no end in sight (Yunus, 2019).…”
Section: Managerial Implicationsmentioning
confidence: 99%