PEER-TO-PEER (P2P) LENDING PLATFORM ADOPTION FOR SMALL MEDIUM ENTERPRISES (SMEs): A PRELIMINARY STUDY

Abstract

Peer to Peer (P2P) Lending platform has been alternative financing which minimized the barriers occurred in credit transaction by traditional banks and financial institutions. This platform should have been a solution for Small and Medium Enterprises (SMEs) with limited access to finance due to their complex characteristics. However, the number of loan transaction incurred in P2P lending platforms in Indonesia is still considered low compared to the number of SMEs scattered around Indonesia. Thus, this study is conducted to determine the factors affect the adoption of P2P lending as perceived by SMEs, along with the relationships. The factors that are considered to be SMEs preferences in finding the source of finance through P2P lending are Loan Process, Interest Rate, Process Cost, Amount of Loan, and Loan Application Flexibility (Saini, 2011). These five factors will then be used as independent variables to assess the adoption of P2P Lending Platform using Unified Theory of Acceptance and Use of Technology (UTAUT).The results of this study will be useful as the information to generate recommendations for the P2P companies for their future implementation and also the government related to the regulations to optimize the use of the P2P lending platform to support the development of SMEs in Indonesia.