Determinants of Millennials’ Behaviors Toward Peer-to-Peer Lending Investment

Abstract

Financial technology grows quite rapidly in Indonesia. One of fintech products peer to peer lending (P2P Lending) reached Rp.54.715 Trillion by August 2019, increased of 141,40% from previous years. P2P Lending characteristics which are user friendly and practical is suitable for millennials who are internet addict, confident, high self-esteem, open minded, tolerant of change, have flexible work schedules, as well as for career advancement. This research aims to determine what are the impacts that affect investment intentions of millennials toward peer-to-peer lending investment in Indonesia, according to Theory of Planned Behavioral, which consists of Attitudes Toward Behavior, Subjective Norms, dan Perceived Behavioral Control. This research uses literature study approach as a method to analyze the factors that influence the intentions of millennials toward investment and descriptive analysis to give assessment and show the connection among different results from existing research. Literature study from previous research indicate that investment intention is influenced by behavioral attitude, subjective norms, perception of behavioral control, and financial knowledge. Other than that, there is an indirect effect of convenience and security variables on investment intention.