ASEAN Journal on Science and Technology for Development


This study aimed to understand how FinTech business lending was affected by the pandemic crisis, which caused small businesses to struggle with limited access to funds. During this crisis, demand for alternative financing, like peer-to-peer (P2P) lending, surged. However, P2P lending faces challenges related to information imbalances, especially during crises, when transparency and economic conditions impact investor decisions in Malaysia. We examined factors like platform interest rates, loan duration, investment size, bank lending rates (BLR), inflation, and the crisis using ARDL analysis. Our long-term analysis revealed a significant positive relationship between investment size and P2P lending, while economic conditions had no significant impact. In the short term, loan tenure played a vital role in determining loan success, and the crisis influenced investor decision-making. These findings suggest that Malaysian P2P lending platforms remained resilient and sustainable, even during unfavorable economic conditions. This resilience underscores the potential of P2P lending to provide a reliable source of financing for businesses, especially in challenging times.

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