Confirmatory factor analysis of individual perception towards peer-to-peer lending platforms

As Fintech innovation continues to dominate the financial industry, peer-to-peer lending platforms emerged and are adopted in several countries including Malaysia. This digital lending platform aids Micro, small and medium enterprises to obtain funds with less efforts hence, experiencing a constant growth in Malaysia. Despite the growth, a lot is unknown including investors perception towards the platforms hence, this paper seeks to confirm factors that may constitute investors perception towards peer-to-peer lending platforms. Data was collected for 20 predetermined items based on previous studies in conjunction with the theory of planned behavior. Result indicates that 17 of these items are valid and reliable to measure individual perception towards peer-to-peer lending platforms. In addition, structural equation models indicate a positive relationship between peer-to-peer lending platform awareness, digital financial risks awareness and time pressure on investors’ perceptions towards P2P LP, and perceived risk has no connection. These findings are useful for further studies, and to enhance platform lending operations when consolidating these factors in the lending process.