Abstract
Financial technology solution, a peer-to-peer (P2P) lending platform, has been considered to overcome restrictions of financial inclusion due to geographical exclusion and high financial transaction costs in developing countries. P2P platform potentially reshapes the financial ecosystem in the supply-demand of microfinance. However, the existing literature on digital transformation and financial inclusion falls short of identifying the role of the P2P model and presenting a balanced view of the barriers and impact of such transformation to financial services serving rural areas in developing countries. This research thus aims to understand the digitally enabled transformation to understand the role of the P2P model in transforming microfinance's supply-demand and investigate the barriers and impacts. The data are collected from 65 participants by employing semi-structured interviews, participant observations, and focus groups. Drawing on a qualitative study on a peer-to-peer (P2P) lending platform in Indonesia, this paper demonstrates the important roles of P2P platform in improving the efficiency, growth and sustainability of the fintech company. The findings also address the barriers and impacts of transformation to further scale up this nascent business model. This work contributes to the digital transformation and financial inclusion literature by proposing theorisation based on the empirical ground evidence in Indonesia.
Recommended Citation
Kumaralalita, Larastri, "The Role of Peer-to-Poeer Lending Platform on Financial Inclusion: Evidence from the Microfinance in Rural Indonesia" (2023). MENACIS 2023. 29.
https://aisel.aisnet.org/menacis2023/29