Analysing the Investor Behaviour on Islamic Peer-to-Peer Lending

Abstract

Islamic peer-to-peer lending is a Sharia compliance platform that connects lenders with borrowers. This research aims to find out the effect of Promotion, Return Expectations, and Risk Perceptions on the Investment intention of Islamic peer-to-peer lending investors. This quantitative research used a questionnaire distribution method. The sample in this research was 100 respondents, and data processing used a Partial Least Square (PLS) computer system. The data analysis technique in the research used two techniques, namely the measurement model test (outer model) and the structural model test (inner model). The results of this research show that the Promotion and Risk Perception variables have a significant effect on Investment Intention, while the Return Expectation variable has no effect on Investment Intention. P2P lending fintech companies are expected to continue to increase promotions, minimize risks, and improve the company’s image so that investors feel safe and are interested in investing in Sharia peer-to-peer lending companies.