P2P Lending platforms in Malaysia: the awareness among young adults


Nguyen, Lan Thi Phuong and Muthaiyah, Saravanan and Sy, Malick Ousmane (2021) P2P Lending platforms in Malaysia: the awareness among young adults. F1000Research, 10. p. 1096. ISSN 2046-1402

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Background - Since 2016, the Securities Commission (SC) in Malaysia has given licenses to only eleven P2P lending platforms. Such lending platforms are expected to disrupt the lending services of traditional lenders in the coming years. However, being still in their infant stages, it is essential to know the extent to which such platforms are made known to potential investors out there. This study examines the extent to which young adults are aware of Malaysia's eleven P2P lending platforms. Methods - A sample of 65 undergraduate students majoring in finance and accounting was used for this pilot study. An online questionnaire was designed with three main parts: demographic, financial literacy, and P2P lending awareness. Results - Findings show that more than half of respondents in the sample are not aware of P2P lending platforms in Malaysia. Most of the respondents are financially literate to certain degrees. Those aware of their presence underestimated the potentially high level of their default rates and misunderstood that investor would be fully protected by such platforms when a loan default.

Item Type: Article
Uncontrolled Keywords: P2P lending platforms, financial literacy, Malaysian young adults, awareness, FinTech, investors
Subjects: H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation > HG4900-5993 By region or country
Divisions: Faculty of Management (FOM)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 06 Oct 2022 02:56
Last Modified: 06 Oct 2022 02:56
URII: http://shdl.mmu.edu.my/id/eprint/10459


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