The Emergence of Peer-to-Peer Lending in Indonesia: A Study of Risk Management Analysis on Conventional Banking Companies
Peer-to-peer lending has been growing since 2005 in the U.S., but in Indonesia the first peer-to-peer lending has just emerged recently in 2016. Peer-to-peer lending fintech companies are able to perform the credit lending service in a more efficient and satisfactory way for customers compared to conventional bank. Some findings have shown that peer-to-peer lending fintech is able to disrupt and snatch conventional bank’s market share. Since the technology is still new in Indonesia, this study aims to understand peer-to-peer lending business in its comparison with conventional banking, and to identify and analyze probable business risks in conventional banking companies regarding the emergence of peer-to-peer lending in Indonesia. The data is collected through questionnaires and from the websites of banking and peer-to-peer lending fintech companies. The identified risk will then be analyzed using analytical hierarchy process (AHP) to measure the importance of each risk. Keywords - Banking, Fintech, Peer-To-Peer Lending, Risk Management, Analytical Hierarchy Process.