H4: Borrowing record possess an optimistic impact on lenders’ choices to provide financing which might be in keeping to MSEs’ standards
In the context of digital credit, this grounds was influenced by multiple activities, as well as social network, financial services, and chance impression having its 9 signs because proxies. For this reason, if the potential investors accept that prospective borrowers meet with the “trust” sign, then they might be felt getting buyers so you Oklahoma auto title loans can provide regarding same amount given that proposed because of the MSEs.
Hstep 1: Sites use facts to have companies has a confident effect on lenders’ decisions to include lendings that will be comparable to the needs of this new MSEs.
H2: Updates operating circumstances has actually a confident affect the brand new lender’s choice to include a credit which is in accordance into the MSEs’ demands.
H3: Ownership at the job money have a positive affect the newest lender’s choice to provide a credit which is in accordance toward need of your own MSEs.
H5: Loan usage provides a positive affect this new lender’s decision so you’re able to give a financing that’s in common to the needs away from the latest MSEs.
H6: Mortgage installment program has actually a confident effect on the fresh new lender’s choice to provide a financing that’s in common towards the MSEs’ requirements.
H7: Completeness out of borrowing specifications file provides a positive influence on this new lender’s choice to provide a credit that is in keeping so you’re able to the MSEs’ requisite.
H8: Borrowing cause have an optimistic effect on the fresh lender’s choice so you’re able to bring a credit that’s in common to MSEs’ requires.
H9: Compatibility out of financing proportions and you will company you prefer has actually a positive feeling towards the lenders’ behavior to provide credit that’s in keeping so you’re able to the needs of MSEs.
step 3.1. Type Get together Studies
The research uses second investigation and you will priple physique and you will material to possess preparing a questionnaire regarding the circumstances one to determine fintech to invest in MSEs. What is gathered away from literature knowledge one another log stuff, guide chapters, process, earlier in the day search while some. At the same time, primary info is necessary to receive empirical studies regarding MSEs from the the standards one to determine her or him during the acquiring credit as a result of fintech lending considering the needs.
No. 1 data might have been obtained in the form of an online questionnaire throughout the in five provinces into the Indonesia: Jakarta, Western Coffee, Central Java, Eastern Java and you can Yogyakarta. Online survey testing used low-probability testing with purposive testing method on the 500 MSEs being able to access fintech. By the shipping out-of forms to any or all participants, there were 345 MSEs who had been willing to fill out the latest questionnaire and you may just who received fintech lendings. Yet not, merely 103 respondents provided complete solutions meaning that just research given because of the him or her try good for further studies.
step 3.2. Research and Changeable
Research that was compiled, modified, following assessed quantitatively according to research by the logistic regression model. Centered varying (Y) is built within the a binary style of the a question: do the lending obtained regarding fintech meet with the respondent’s standard otherwise maybe not? Contained in this perspective, the fresh new subjectively suitable respond to got a get of 1 (1), while the most other obtained a get out-of zero (0). Your chances variable will then be hypothetically determined by multiple parameters because showed in the Dining table 2.
Note: *p-worth 0.05). Thus new model is compatible with the fresh new observational analysis, that is suitable for further data.
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.