H4: Borrowing from the bank records has an optimistic influence on lenders’ decisions to add lending that will be in accordance to MSEs’ requirements
Relating to virtual lending, it factor are dependent on several affairs, as well as social network, economic functions, and you may chance perception using its nine indicators as the proxies. Hence, in the event that prospective dealers accept that prospective consumers meet the “trust” sign, then they would-be sensed for people in order to lend from the same amount due to the fact recommended because of the MSEs.
Hstep 1: Internet sites play with facts to have people have an optimistic affect lenders’ decisions to include lendings which might be equal to the requirements of the fresh MSEs.
Hdos: Updates operating items possess a positive influence on the new lender’s choice to include a financing which is in keeping towards MSEs’ requirements.
H3: Control of working capital possess a confident impact on the lender’s choice to provide a financing that’s in common to the need of your MSEs.
H5: Loan use has actually a confident impact on the newest lender’s decision to bring a lending that is in keeping into the requires off brand new MSEs.
H6: Financing repayment program provides an optimistic influence on new lender’s decision to include a lending that’s in accordance into MSEs’ demands.
H7: Completeness out-of borrowing from the bank requirements document have a positive impact on this new lender’s decision to provide a financing that is in accordance to help you the newest MSEs’ specifications.
H8: Credit need has a confident impact on the newest lender’s decision so you’re able to bring a financing that is in accordance to help you MSEs’ need.
H9: Compatibility from financing size and you will team you desire has actually a confident effect on lenders’ choices to incorporate lending that is in accordance in order to the needs of MSEs.
3.1. Variety of Collecting Data
The analysis spends second analysis and you will priple figure and question for getting ready a questionnaire regarding facts one determine fintech to finance MSEs. Every piece of information was obtained out of books studies both log posts, book sections, process, prior research although some. Meanwhile, primary information is needed seriously to receive empirical analysis from MSEs in the the factors one dictate her or him inside the getting borrowing thanks to fintech lending based on its demands.
Number one investigation might have been gathered in car title loan NM the form of an online survey through the in the four provinces within the Indonesia: Jakarta, West Java, Central Coffee, East Coffee and Yogyakarta. Online survey testing used low-possibilities sampling which have purposive sampling approach to your five-hundred MSEs accessing fintech. By shipment from questionnaires to all or any respondents, there were 345 MSEs who were prepared to submit this new survey and you can who acquired fintech lendings. not, only 103 participants gave done solutions which means that simply analysis provided from the them is good for additional studies.
step three.2. Studies and you can Changeable
Data that was built-up, edited, right after which analyzed quantitatively based on the logistic regression design. Mainly based changeable (Y) is actually created for the a digital manner of the a question: really does the fresh financing obtained off fintech meet with the respondent’s expectations or not? In this perspective, the new subjectively compatible answer got a get of 1 (1), and the other was given a score from zero (0). The possibility adjustable will then be hypothetically influenced by multiple variables as exhibited in Dining table 2.
Note: *p-worth 0.05). Consequently this new model is compatible with the latest observational data, in fact it is suitable for further analysis.
The first interesting thing to note is that the internet use activity (X1) has a negative effect on the probability gaining expected loan size (see Table 2). This implies that the frequency of using internet to shop online can actually reduce an opportunity for MSEs to obtain fintech loans. It is possible as fintech lenders recognize that such consumptive behavior of MSEs could reduce their ability to secure loan repayment. Secondly, borrowers’ position in business (X2) is not significant statistically at = 10%. However, regression coefficient of the variable has a positive sign, indicating that being the owner of SME provides a greater opportunity to obtain fintech loans that are equivalent to their needs. Conversely, if a business person is not the owner of an SME then it becomes difficult to obtain a fintech loan. The result is similar to Stefanie & Rainer (2010) who found that information concerning personal characteristics, such as professional status was an important consideration for investors in fintech lending. Unlike traditional financial institutions, fintech lending is not a direct lender but an agent that acts as a liaison between the investors and the borrowers. It means that the availability of information about personal qualifications is important for investors to minimize the risk of online-based lending. A research by Ding et al. (2019) on 178, 000 online lending lists in China, also revealed that the reputation of the borrower is the main signal in making fintech lending decisions.