PEER-TO-PEER LENDING VS. COMMERCIAL BANK’S CREDIT SYSTEM: FINANCING SOLUTIONS FOR MSMEs IN INDONESIA
##plugins.themes.bootstrap3.article.main##
Abstract
Innovation brings advantages and disadvantages which results in acceptance and rejection from people. Technological innovations have affected all sectors of life, particularly, the financial sector with the emergence of financial technology. One of them is marked by the emergence of Peer-to-Peer lending ("P2P lending"), an information technology-based lending service, which provides loans to those who need funds with a faster process, yet without having to collateralize any assets. The easier and faster process of P2P lending accommodates the needs of Micro, Small, and Medium-sized Enterprises (“MSMEs”), specifically non-bankable MSMEs, to obtain loans. However, P2P lending has not replaced banks because their existence has earned the people's trust with the quality of its services. This paper aims to provide an explanation of the differences between commercial bank's credit systems and P2P lending in Indonesia to give understanding to the public regarding loans through both systems. The results of this paper shows that the two systems have their respective advantages and disadvantages, so that hopefully the people can be considerate in choosing them to meet their needs.
##plugins.themes.bootstrap3.article.details##
Copyright and Permissions
An objective of the TLJ is to promote the wide dissemination of the results of systematic scholarly inquiries into the broad field of business law. Permission is hereby granted to reproduce any of the contents of the journal for use in courses of instruction, as long as the source and “TLJ copyright” are indicated in any such reproductions.
Written application must be made to the Editor in Chief for permission to reproduce any of the contents of the journal for use in other than course of instruction—e.g., inclusion in books of readings or in any other publications intended for general distribution. In consideration for the grant of permission by the journal in such instances, the applicant must notify the author(s) in writing of the intended use to be made of each reproduction. Normally, the journal will not access a charge for the waiver of copyright.
Except where otherwise noted in articles, the copyright of articles in the journal has been transferred to the TLJ. Where the author(s) has (have) not transferred the copyright to the TLJ, the applicant must seek a permission to reproduce (for all purpose) directly from the author(s).