Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia

Research Article

Fintech Lending Support for Micro, Small and Medium Enterprises (MSME) in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.25-11-2021.2318843,
        author={Rudianto  Simamora and Iskandar  Muda},
        title={Fintech Lending Support for Micro, Small and Medium Enterprises (MSME) in Indonesia},
        proceedings={Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICSST},
        year={2022},
        month={7},
        keywords={fintech lending; financial inclusion; alternative financing},
        doi={10.4108/eai.25-11-2021.2318843}
    }
    
  • Rudianto Simamora
    Iskandar Muda
    Year: 2022
    Fintech Lending Support for Micro, Small and Medium Enterprises (MSME) in Indonesia
    ICSST
    EAI
    DOI: 10.4108/eai.25-11-2021.2318843
Rudianto Simamora1,*, Iskandar Muda1
  • 1: Universitas Sumatera Utara, Medan, Indonesia
*Contact email: rasima_oke@yahoo.com

Abstract

This study examines the effect of the number of borrower accounts and the effect of savings on fintech lending in Indonesia. The appearance of fintech lending can be alternative funding for Micro, Small and Medium Enterprises compared to banking because it is easy, fast and accessible to anyone. The community's response can be seen from the use of fintech to obtain funding and places to invest. This study employed a quantitative method to collect secondary data on fintech lending in Indonesia from January 2018 to August 2021. The results indicated a negative effect of the borrower accounts on fintech lending funding. The amount of savings did not affect fintech lending funding. In additional testing, it appeared that funding for the transportation and warehousing business has a positive effect on fintech lending funding. In contrast, the amount of bank funding for MSMEs has no effect. This research contributes academically and practically as part of the financial inclusion issue.