Financial Technology: An Evaluation of the Integrated Model for Peer-to-Peer Lending Platforms in Indonesia

Abstract

Purpose: The aim of this study is to examine the use peer-to-peer lending platforms in Indonesia by integrating Technology Acceptance Model (TAM), Theory of Trust, and Social Cognitive Theory (SCT).

Theoretical framework: The theory of this study is Technology Acceptance Model (TAM), Theory of Trust, and Social Cognitive Theory (SCT).

Design/methodology/approach: The paper opted for an exploratory study using survey approach. 211 respondents were selected using snowball sampling to people who know about P2P Lending and have or were using the services provided by the platforms. Data analysis used Structural Equation Model-PLS by Smart-PLS 3.0 software

Findings: The results show that self-efficacy is dominant in directly shaping individual’s behavioral intention for using P2P Lending and indirectly creating perceived ease of use. In theoretical perspective, the findings provide empirical evidences that the behavior of individuals in using information technology is determined by several factors included in the integrated model, by which literatures in system usage behavior are enriched.

Research, Practical & Social implications: The study also contributes to practices by providing considerations for the government in their effort of making policies related to online loans and for service providers in updating their technology.

Originality/value: This study identifies factors influencing the behavioral intention of lenders and borrowers to use P2P Lending through integration of three models: Technology Acceptance Model, Theory of Trust, and Social Cognitive Theory.