Investigation of Bad Credit in P2P Lending Based on Personal Character in Indonesia

Abstract

This research examines Indonesian P2P lending and bad loan management by analyzing borrower characteristics. The large value of problematic loans is a key signal for this investigation. The Big Five Personality Approach is used to survey P2P lending users. This study solely examines if the Big Five personality traits affect evaluation. On March 5–18, 2023, 17 P2P lending sites gathered data from 197 respondents for two weeks. Data validation continued until 11 respondents were pruned. The remaining 186 respondents' data was evaluated using SPSS. The management process yielded two hypothesis tests, the T-test and the F-test, which showed that the Big Five personality significantly affects present assessment activities. F-Test findings show the Big Five Personalities have a big impact concurrently. These two factors suggest that the Big Five Personalities may evaluate decision support systems for borrower recommendations.