Big five personality with fuzzy approach to feasibility assessment and loan determination for peer-to-peer lending

Abstract

Bad credit is an uncollectible receivable because the debtor has difficulty repaying. In May 2023, the number of loans will increase by 3.36%. This is due to the inaccuracy of creditors in assessing prospective debtors. Several methods of valuation of prospective debtors have been widely used, but the use of the test big five personality (TBFP) method for the assessment of prospective debtors has not been found. This study will use TBFP as an input variable that will be calculated using fuzzy-Mamdani. The output of the system is in the form of a recommended percentage (%) of the loan amount. This research needs to be done to provide an assessment of prospective debtors to be more objective so that bad credit problems can be reduced. The results of this study are taken into consideration to be used as input in assessing prospective debtors that are more appropriate so that it has an impact on increasing income. For the community can increase business activities. For the government to help people’s economic activities. Our research still needs to be developed by adding variables such as the financial condition of prospective debtors, psychological values, and loan history. Apart from that, it is necessary to carry out an in-depth study regarding recommendations for loan amounts for bad credit