Revisited the Technology Acceptance Model with E-Trust for Peer-to-Peer Lending in Indonesia (Perspective from Fintech Users)

The rapid increase in the number of fintech companies in Indonesia in the past three years has attracted the attention of many stakeholders, including the government, investors, conventional bank management, and even the general public. The phenomenon of the development of peer-to-peer  lending fintech companies in Indonesia is supported by the increasing demand of consumers. The research objective is to provide insight into the determinants of consumer interest in using fintech applications, using the technology acceptance model  by added e-trust variables . The data analysis method used structural equation modeling with WarpPLS 6.0 software. Questionnaires were distributed to fintech consumers in Indonesia, with a total sample of 379 respondents. The results of this study indicate that the dimensions of e-trust contribute to determining the perceived usefulness, perceived ease of use, attitude to adopt peer-to-peer lending fintech services, and intention to use peer-to-peer lending applications.

Attitude; E-trust; Intention to use; Perceived ease of use; Perceived usefulness

    The term fintech is an abbreviation of the words "financial" and "technology " that means an innovation in the field of financial services that combines technology and financial service activities (Schueffel, 2016; Ketterer, 2017). Fintech is a new sector in the financial industry that combines various technologies to support trade, corporate business, and services to retail consumers (Gibson, 2015; Micu and Micu, 2016; Temelkov, 2018). It has been very popular in various countries in the last ten years (Arner et al., 2015; Prawirasasra, 2018; KPMG, 2018; Jünger and Mietzner, 2019). Indonesia has great potential for the development of fintech. With a population of around 250 million and gross domestic product in the first quarter of 2018 reached IDR 3,505.3 trillion (Badan Pusat Statistik, 2018). Fintech is one of product that born in the digital era and this is innovation for financial industry (Berawi, 2014; Accenture, 2019). This can be seen from the popularity of fintech in Indonesia, which is in line with the increasing use of internet services and number of smartphone users. However, the results of Sjamsudin's study (2019) show that the market share of fintech in the financial services sector is still relatively small compared to the market share of banks. But, the rapid increase in the number of fintech companies in Indonesia  over  the  past  three  years  has  attracted  the  attention  of  many stakeholders, including the government, investors, conventional bank management, and even the general public (Davis et al., 2017; Otoritas Jasa Keuangan, 2017; Dipa, 2018).

Fintech can be divided into four sectors, namely e-payment/e-wallet, crowdfunding and peer-to-peer lending, risk and investment management, and market aggregators (Bank Indonesia, 2017). According to Hadad (2017), fintech in Indonesia increased every year until 2016; there are 165 fintech listed in the Indonesian Fintech Association and Indonesian Government Financial Services Authority (Otoritas Jasa Keuangan, 2017). The most widely developed is fintech for payment systems (e-payment/e-wallet) is 42% , while peer-to-peer lending is18% (Hadad, 2017; Otoritas Jasa Keuangan, 2017; Dipa, 2018; Duwitmu, 2019; Franedya, 2019; Setyowati, 2019; Sjamsudin, 2019). The role of fintech is expected to provide equal distribution of the welfare of the population in Indonesia, especially by encouraging micro, small, and medium enterprises (KPMG, 2018).

Peer-to-peer lending is a fintech that is suitable for providing limited capital solutions for small and medium enterprises. The total increase in lender account entities in Java, outside Java, and abroad from 2017 to July 2019 was 149.94% (Otoritas Jasa Keuangan, 2017; AlphaJWCVentures, 2019; Kurniawan et al., 2019). The fintech peer-to-peer lending operating system offers convenience for its users through web-based platforms  and smartphone applications  (Kurniawan et al., 2019; Suyanto and Kurniawan, 2019). In addition, there were 52 companies using applications on their website or web-based platforms. Peer-to-peer lending offers easy terms, flexible guarantees, and speed of service to borrowers to obtain loans through fintech services with competitive interest rates (Aaron et al., 2017; Hadad, 2017; Nursyirwan, 2018; Sjamsudin, 2019). The average time to process a loan disbursement is between 2– 3 days. Behind the convenience of fintech there are some risks that can be dangerous for users (Xie et al., 2016; Suyanto and Kurniawan, 2019). According to Giudici (2018), investing in peer-to-peer lending has a high risk because peer-to-peer platforms have less information about their borrowers, compared to banks, and are less able to handle asymmetric information.

Although peer-to-peer lending services have a variety of risks in their use, several studies have shown an increase in the interest of companies, markets, and the public in using these services (Magee, 2011; Frame and White, 2014; Xie et al., 2016; Prayogo, 2017; Otoritas Jasa Keuangan, 2019; Gozali et al., 2020). The number of fintech service providers continues to increase, and some of the results of previous studies conclude that consumer acceptance is a major determinant of the development of fintech in a country (Agarwal et al., 2009; Ben Mansour, 2016). Referring to Alalwan et al. (2015), Candra (2013), and Suyanto and Kurniawan (2019) has confirmed the results of previous studies that the resistance factor is a major barrier for consumers in adopting technology-based financial services. This study aims to provide information about the factors that influence a prospective customer's acceptance of these services and these findings will help service providers or start-ups in designing appropriate fintech lending promotion strategies so that, in the long run, they can contribute to spurring digital economic growth in Indonesia.

The ability to understand information and the benefits of using online loan applications among target users in Indonesia are still major factors in adopting a new technology at the level of use, so we suggest additional research that is oriented toward users of banking services on the internet, especially peer-to-peer lending fintech application services. By knowing the specific desires of the segments of society studied, the banking industry, particularly digital banking that develops fintech peer-to-peer lending, can focus on understanding and increasing people's desires about what features must be provided to provide banking services and improve operational efficiency.

This study intentionally examined the role of e-trust in the use of peer-to-peer lending fintech applications by banking consumers in Indonesia. It is evident that the e-trust dimension contributed to determining the perceived usefulness, perceived ease of use, and attitude to adopt peer-to-peer lending fintech services and the intention to use the peer-to-peer fintech lending applications. In addition, this study also shows the importance of the role of e-trust variables in determining the perceived benefits, attitudes toward internet banking, and behavioral intentions. The users' perception that electronic transactions are easy and can be controlled is very important for internet banking business adoption because ease of use and trust creates control and perception of usability.

An implication of this research is the importance of the digital banking industry, especially the fintech peer-to-peer lending application service, owning and developing an internet banking system that is easy to use and has features that suit user needs. Given the large number of resources that have been invested in realizing the internet banking system globally, it is very important to ensure that user will use fintech lending applications. To achieve this goal, special attention is needed to design fintech peer-to-peer lending application displays that are easy to use, useful, and reliable. Internet banking industry players need to develop confidence in perceived usefulness, perceived ease of use, user credibility, and integrity regarding fintech peer-to-peer lending applications.

This research still has some limitations and allows for further research. This research is an empirical study conducted with an observational research approach carried out at one time. This results in a lack of ability of the study results to reflect temporal changes in research construction, especially when internet banking technology is changing very rapidly. Future research efforts in the future should also be done to validate intention to use through the actual use of the system.

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