Indonesia Conference Directory

1. Introduction and research problem The development of information technology has an impact on the financial services industry with the advent of financial technology (FinTech) products. The Financial Services Authority (OJK) defines FinTech as utilizing the development of information technology in improving services in the financial industry. The OJK has classified FinTech in Indonesia into 5 major groups including (1) digital payment systems, (2) Financing & Investment, (3) information & feeder side, (4) account aggregator and (5) personal finance. P2PL is a financial technology (FinTech) product. Peer-to-peer lending provides an opportunity for a investor to provide funds/capital loans to people who need funds directly through a digital platform. P2PL is seen as an attractive investment instrument because it offers a high rate of return when compared to conventional investment instruments. The growth of the P2PL company was also welcomed by the community who contributed to becoming a borrower or becoming a lender. The presence of P2PL was quickly utilized by the people who needed a fast loan. The number of borrowers calculated based on the number of accounts increased by 786.5% from last year, so that as of September 2018, the number of borrowers was 2.3 million borrower accounts. So far, 85.6% of borrowers still come from Java. However, from year to year funding has begun to flow to regions outside Java, which was only 3.3% of the total number of borrower accounts in Indonesia in December 2016, to 14.4% (September, 2018). Garman et al. (2008) states that investors are one of the keys to success in the sustainability of the P2PL industry. Investors are looking for loans that can be funded as an alternative investment or additional investment instruments that have been owned. Jahanzeb and Muneer (2012) state that the decision making process is a complex cognitive process for choosing an alternative among the other available alternatives. In this study, researchers will provide a perspective on how investors decide to invest and how the process of selecting P2PL companies in Indonesia and the experience of investors in investing in P2PL. Investor experience is expected to provide insight for individuals who want to learn and consider P2PL as an investment alternative. 2. Methods This study uses a qualitative approach to view investor perspectives on P2PL as an alternative investment. Researchers conduct in-depth interviews with informants (investors). Researchers conduct an inductive process by building patterns, categories and themes starting from data and then entering into more abstract units of information. This process is repeated until the researcher can build a complete theme from all the data he has. Further more the deductive process is also carried out when a theme has been obtained to see and ensure the evidence supporting each theme is sufficient. If it is still lacking, researchers will look for and recombine other i