Abstract
Fintech is known as one of the most important innovations unity in financial industry that is growing rapidly and increase financial inclusion, especially the expansion of access to capital for SMEs. However, research related to this is still limited. This research tries to extend TAM model in financial context by adding external variables such as financial knowledge and financial risk tolerance as driving factor millennials to invest in Fintech P2P lending. This research uses quantitative research using primary data and uses Partial Least Squares-Structural Equation Modelling (PLS- SEM) to analysis the data that has been collected. The result indicates that millennial investment intentions are influenced by perceived usefulness, and risk averse. Findings in this research proves that the users who tend to avoid risks and uncertainties can be encouraged to invest in P2P lending. In the term of technology factor, users who believe that the features in the application of P2P lending is useful and beneficial will encourage users to invest.
Highlights
The development of Fintech in Indonesia always increasing since its inception
Reporting from the official Idx channel (2020), investor in Indonesia keep increasing, if we viewed at the end of the year 2019, initially there were only 1.619.374 investors, there was a very significant increasing about 53,04% or 2.478.243
At the beginning of investment made in the market of capital with a variety of products such as stocks and bonds, but today there are many applications that allows users to invest which is an innovation in the financial industry is referred to as Fintech (Financial Technology)
Summary
The development of Fintech in Indonesia always increasing since its inception. Reporting from the official Idx channel (2020), investor in Indonesia keep increasing, if we viewed at the end of the year 2019, initially there were only 1.619.374 investors, there was a very significant increasing about 53,04% or 2.478.243. The increase was in line with the increase in the composite Stock Price Index (IHSG) in the capital market and most of them were investors who owned mutual funds. At the beginning of investment made in the market of capital with a variety of products such as stocks and bonds, but today there are many applications that allows users to invest which is an innovation in the financial industry is referred to as Fintech (Financial Technology). FinTech is considered as a new paradigm in which a new technology is driving innovation in the financial industry (Lee & Shin, 2018). Fintech known as one of the most important innovations unity in financial industry that is growing rapidly, which entered the sharing economy, regulation of the lucrative and information technology (Lee dan Shin, 2018). There are various types of Fintech such as e-wallet, crypto-currency, Peer-to-Peer lending (P2P), Insuretech, fund crowd is a major financial alternative for consumers and businesses (Jin et al, 2019)
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