WHAT DETERMINANT FACTORS INFLUENCE INVESTOR TOWARDS PEER-TO-PEER LENDING? SURVEY OF GRADUATE STUDENTS IN INDONESIA

• Main Author: 29116043, Ramadhanora
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30184
• Institution: Institut Teknologi Bandung

The problem of the development financing gap and the uneven distribution of financing services are still faced in Indonesia. One of them related to access to loans, there are a lot of Small and Medium Enterprises (SMEs) in Indonesia that have not been reached by the Bank. Limited coverage of conventional lending companies has limited public access to these loans. The Government has established the National Inclusive Finance Council to support increased financial inclusion in Indonesia. The presence of Peer-to-Peer Lending in Indonesia, as an online and transparent lending borrowing service, is expected to support the government's program to make SME financing services and other financing needs in Indonesia more equitable and growing. In addition, P2P Lending is expected to become an alternative investment option for investors in Indonesia. Related to the development of this industry in the future, required funding from the lender, therefore the effort to attract new investors to invest on Peer-to-Peer Lending platform is needed. The lack of awareness of Indonesians towards investment and the low number of local investors in Indonesia is a major obstacle. Therefore, efforts are made to increase public awareness and investment desire to attract new investors by increasing the attractiveness of this business, by knowing what factors are important determinants of an investor/prospective investors decision to be willing to invest on the platform P2P Lending. The method used in this study is a quantitative method (questionnaire) addressed to MBA ITB students as respondents. Data processing questionnaire using regression analysis with binary dependent variable (logistic regression). Based on survey results and data analysis showed that from 14 variables tested, there are 7 significant variables that affect the willingness of the lender to lend. These 7 variables are safety protection, loan amount, verified document, accumulated transactions & repayment history, supplementary information, perceived risk, and transaction fee.