The Impact of Financial Technology Peer-to-Peer Lending (P2P Lending) on Growth Credit Rural Bank

Abstract

The competition faced by the Rural Bank (BPR) industry is getting more intensed. A few years ago, the Commercial Bank through the Micro Credit Program (Kredit Usaha Rakyat/KUR) became main competitor in distributing working capital loans or tconsumptive loans. However, new competitor is currently emerging in the financial sector, that is institution based on financial technology (fintech). Fintech can provide financial products and services that are easy, effective, efficient, and fast. The focus of this research is on fintech peer-to-peer lending (p2p lending). The purpose of this study is to describe the impact of financial technology peer-to-peer lending on BPR credit growth. This study used qualitative descriptive approach with literature review method. Data analyzed used reducing data, presenting data, and making conclusions. The result showed that peer-to-peer lending impacting BPR credit growth due to regulations and relevant institutions that supporting fintech's development. BPRs must be able to develop or innovate the products and services provided to the public or customers. BPRs can also collaborate with Fintech p2p lending to advance improvement and efficiency in term of services provided by the BPRs.