The Entrepreneurs’ Insights and Fears Towards Sharia Fintech Lending (Study of SMEs in West Sumatra)

DOI

10.2991/978-94-6463-350-4_52How to use a DOI?

Keywords

Sharia Peer-to-peer Lending; Financial Technology; Lending; Investing

Abstract

The innovation of financial technology (fintech), especially in peer-to-peer lending (P2PL), has reached significant users in the last couple of years. P2PL has been utilized worldwide, including in Indonesia, by interns of investing and lending funds. By 2021, there will be more than 125 fintech peer-to-peer lending companies in Indonesia licensed by Financial Services Authorities (FSA) to serve financial issues of SME. 10 out of 125 peer-to-peer lending in Indonesia are sharia fintech lending which has been registered and licensed by FSA in June 2021. As the increase of P2PL has become more complex and advanced, there should be an empirical investigation of the entrepreneurs’ intention to utilize sharia P2PL. Therefore, this research empirically tests how trust, the attitude of entrepreneurs, perceived ease, perceived risk, and perceived use affect the intention of entrepreneurs to use the Sharia P2PL plat form in financing their business. The design of this research uses a quantitative approach where the data are obtained from questionnaire distribution. The data is analyzed using the Structural Equation Model (SEM) with intelligent PLS. From the distributed questionnaires, 100 SMEs participated in this research. The findings show that trust affects the intention of entrepreneurs to use Sharia P2PL, while perceived ease does not affect the intention of entrepreneurs to utilize Sharia P2PL. Interestingly, perceived use and attitude affect the intention of entrepreneurs to use Sharia P2PL, while the risk factor does not affect the intention of entrepreneurs to use Sharia P2PL.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Rayna Kartika
AU  - Annisaa Rahman
PY  - 2024
DA  - 2024/01/10
TI  - The Entrepreneurs’ Insights and Fears Towards Sharia Fintech Lending (Study of SMEs in West Sumatra)
BT  - Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
PB  - Atlantis Press
SP  - 530
EP  - 539
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-350-4_52
DO  - 10.2991/978-94-6463-350-4_52
ID  - Kartika2024
ER  -