Peer to Peer Lending Industry in China and Its Implication on Economic Indicators: Testing the Mediating Impact of SMEs Performance

Abstract

This papers studies and analyses the development and current status of Financial Technology (FinTech) industry and Peer-to-Peer (P2P) Lending industry in the People’s Republic of China (mainland China), and then investigates the impact of the P2P industry on development of Chinese Small and Medium-sized Enterprises (SMEs) as well as selected economic indicators. Due to the fact that Fintech and more particularly P2P industry is a recent phenomenon, secondary data was collected for 2014 to 2019 from government data sources and company’s websites. The results of Structural Equation Modeling (SEM) analysis indicate the significant impact of P2P lending industry on the economic indicators with mediating impact of SMEs performance. The finding shed light on the financing difficulties faced by SMEs and the role of P2P industry to bridge this gap which have implications for government policies and financial institutions.

The Role of Fintech in Financial Inclusion (Case Study of MSME Entrepreneurs in Surabaya)

“…Fintech, encompassing various technologies such as mobile money, peer-to-peer lending, and crowdfunding, plays a crucial role in supporting Small and Medium Enterprises (SMEs) in accessing finance and overcoming financial constraints (Abbasi et al, 2021;Utami & Sitanggang, 2021;Chen et al, 2023;Naysary & Daud, 2021;Winarsih et al, 2020;Rumondang, 2018;Mutamimah & Hendar, 2020). These technologies provide SMEs with easier access to capital, improve financing availability, and enhance financial literacy, ultimately contributing to the growth and sustainability of SMEs (Utami & Sitanggang, 2021;Qurniawati & Nurohman, 2021;Winarsih et al, 2020;Rumondang, 2018).…”

“…These technologies provide SMEs with easier access to capital, improve financing availability, and enhance financial literacy, ultimately contributing to the growth and sustainability of SMEs (Utami & Sitanggang, 2021;Qurniawati & Nurohman, 2021;Winarsih et al, 2020;Rumondang, 2018). Additionally, fintech solutions like P2P lending and crowdfunding have emerged as effective mechanisms for SMEs to meet their financing needs (Abbasi et al, 2021;Naysary & Daud, 2021;Rumondang, 2018).…”

Inklusi Keuangan, P2P Lending dan Kinerja UMKM: Peran Moderasi Literasi Keuangan

“…Konteks ini, P2P lending membantu mengatasi permasalahan utama pelaku UKM, terutama permodalan yang rendah, sehingga mempercepat pertumbuhan usaha. Temuan ini konsisten dengan hasil penelitian terdahulu (Amranı et al, 2018;Harp et al, 2021;Naysary & Daud, 2021) yang menunjukkan adanya dampak positif P2P lending pada kinerja UMKM.…”

Exploring FinTech Lending: The Influence of Financing and Economic Factors on the Success of Peer-to-Peer (P2P) Funded Loans

“…As a result, loan repayment terms become more stringent, leading to a decrease in loan portfolio quality. Empirical evidence shows that inflation is a crucial economic indicator that substantially affects the P2P lending sector (Foo et al, 2017;Naysary & Daud, 2021;Nigmonov et al, 2021;Wong & Eng, 2020). However, standard financial market analysis has produced conflicting results, showing inconsistent relationships between inflation and loan performance.…”