Fintech Peer-to-Peer Lending, E-Money and Indonesia's Economic Growth
1Gabriella Lavenia Sutjiono, 2Pwee Leng
1,2Petra Christian University Surabaya
https://doi.org/10.47191/jefms/v7-i8-47ABSTRACT:
The adoption of modern technology has a very important role and impactful on economic growth. One of the trends in financial sector in Indonesia is the financial technology (fintech) which marks the era of modern technological innovation that is increasingly penetrating the financial sector. The growth of corporate investment supported by fintech, P2P lending and e-money has great potential to increase productivity, create new jobs, and ultimately, drive sustainable economic growth. In this context, growth in the distribution of fintech lending through P2P lending and fintech payments through e-money indicates an increase in investment that can have a significant impact on national income. This study aims to examine the influence of fintech P2P lending and e-money on Gross Domestic Product (GDP) as an indicator of economic growth in Indonesia. This study also considers several macroeconomic factors such as inflation and interest rates as control variables that can affect Indonesia's GDP. The results of the study show that Financial Technology, especially through the adoption of e-money, has a significant impact on economic growth in Indonesia. The test results indicate that the variables of P2P lending, e-money, inflation, and interest rates simultaneously have a significant effect on economic growth. The results of the study also show that the adoption of e-money accelerates the transaction process and improves economic efficiency. In contrast, P2P lending does not show significant influence. Research shows that the additional benefits of technology adoption, including P2P lending, are likely to decline as the penetration of such technologies in the economy increases. To improve the accuracy and relevance of the data used, it is recommended to perform a more detailed separation related to P2P lending data. In addition, extending the research period will allow the observation of the long-term impact of fintech, particularly P2P lending and e-money, on economic growth.
KEYWORDS:
economic growth, financial technology, peer-to-peer lending, E-money, gross domestic product
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