Trust in Online Peer-to-Peer Lending in Indonesia from a Cognitive-Based Perspective

  • Reni Mutiarani Saraswati Institut Bio Scientia Internasional Indonesia (i3L), Jl. Pulomas Barat No.Kav. 88, RT.4/RW.9, Kayu Putih, Kec. Pulo Gadung, Kota Jakarta Timur, Daerah Khusus Ibukota Jakarta 13210
  • Verrel Keung Institut Bio Scientia Internasional Indonesia (i3L), Jl. Pulomas Barat No.Kav. 88, RT.4/RW.9, Kayu Putih, Kec. Pulo Gadung, Kota Jakarta Timur, Daerah Khusus Ibukota Jakarta 13210
  • Fariz Hutama Putra Institut Bio Scientia Internasional Indonesia (i3L), Jl. Pulomas Barat No.Kav. 88, RT.4/RW.9, Kayu Putih, Kec. Pulo Gadung, Kota Jakarta Timur, Daerah Khusus Ibukota Jakarta 13210
DOI: https://doi.org/10.21632/perwira.7.2.on%20process
Keywords: perceived risk, social capital, information quality, partial least square structural equation modeling (PLS-SEM)

Abstract

This study investigates the perceptions of peer-to-peer (P2P) lending intermediaries and borrowers on lender trust. The trust model was used to develop the lender's trust in the peer-to-peer (P2P) lending sector by incorporating a similar model from a previous study in China. There are three dimensions of cognitive-based trust used in this model, they are social capital, perceived risk and information quality. A partial least square regression structural equation modeling (PLS-SEM) was used to evaluate the model.  A quantitative online survey was distributed to 100 P2P lenders in Jakarta, Indonesia. The data collected was analyzed using PLS-SEM for its convergent validity, reliability, discriminant validity, and model fit. This study's approach integrates the antecedents of trust points to identify the criteria of lenders for achieving a successful loan transaction. The findings of the study revealed that it is essential for borrowers to build a good reputation and provide sufficient information needed to boost a lender's trustworthiness.

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Published
2025-01-14
How to Cite
Saraswati, R., Keung, V., & Putra, F. (2025). Trust in Online Peer-to-Peer Lending in Indonesia from a Cognitive-Based Perspective. PERWIRA - Jurnal Pendidikan Kewirausahaan Indonesia, 7(2), on process. https://doi.org/10.21632/perwira.7.2.on process
Issue
Vol 7 No 2 (2024): PERWIRA - Jurnal Pendidikan Kewirausahaan Indonesia - In Progress
Section
Articles

Copyright (c) 2024 Reni Mutiarani Saraswati, Verrel Keung, Fariz Hutama Putra

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