Abstract
This research investigates the factors that influence the Investor switching intention from deposits or investing their funds in traditional financial services, namely banks, to invest in the Financial Technology Peer-to-Peer Lending. We build the research model adapting the Push–Pull Mooring (PPM) Framework to describe the migration theory of customers switching behavior. The Push factors include customer’s Satisfaction on Bank and perceived Service Quality on Bank. While the Pull Factors is Individual’s Knowledge toward Peer-to-Peer Lending and Personal Reward Sensitivity. Multiple Regression Analysis is used to analyze the model and relationship between variables. We collected data from 170 respondents who are investing part of their portfolio in a bank deposit. We find that Pushing factors of customer satisfaction and perceived Service Quality on banks has a negative effect on investor switching intention. The Pull factor of an Individual’s Knowledge toward Peer-to-Peer Lending and personal Reward Sensitivity positively affects investor switching intention.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Afandi, M.A.: switching intentions among millennial banking customers to fintech lending. IJIEF: Int. J. Islamic Econ. Financ. 3(2), 283–304 (2020)
Amalia, N., Dalimunthe, Z., Triono, R.A.: The effect of lender’s protection on online peer-to-peer lending in Indonesia. In: Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020, pp. 6056–6066 (2019). https://www.scopus.com/record/display.uri?eid=2-s2.0-85074066697&origin=resultslist
Anderson, E.W., Sullivan, M.W.: The antecedents and consequences of customer satisfaction for firms. Mark. Sci. 12(2), 125–143 (1993)
Drasch, B.J., Schweizer, A., Urbach, N.: Integrating the ‘troublemakers’: a taxonomy for cooperation between banks and fintechs. J. Econ. Bus. 100, 26–42 (2018)
Athanassopoulos, A., Gounaris, S., Stathakopoulos, V.: Behavioural responses to customer satisfaction: an empirical study. Eur. J. Mark. 35(5/6), 687–707 (2001)
Chang, J.: The effects of buyer-supplier’s collaboration on knowledge and product innovation. Ind. Mark. Manage. 65, 129–143 (2017)
Bogue, D.J.: Principles of Demography. Wiley, New York (1969)
Clemes, M.D., Gan, C., Zheng, L.Y.: Customer switching behaviour in the New Zealand banking industry. Banks Bank Syst. 2(4), 50–65 (2007)
Bansal, H.S., Taylor, S.F., James, Y.S.: “Migrating” to new service providers: toward a unifying framework of consumers’ switching behaviors. J. Acad. Mark. Sci. 33(1), 96–115 (2005)
Dalimunthe, Z., Syakhroza, A., Nasution, M.E., Husodo, Z.A.: How feasible is a convertible Ijarah contract for SME financing?: a simulation approach. J. Islamic Monet. Econ. Financ. 5(2), 439–458 (2019). https://doi.org/10.21098/jimf.v5i2.1070
Hou, A.C., Chern, C.C., Chen, H.G., Chen, Y.C.: Migrating to a new virtual world’: exploring MMORPG switching through human migration theory. Comput. Hum. Behav. 27(5), 1892–1903 (2011)
Hsieh, P.J.: Understanding medical consumers’ intentions to switch from cash payment to medical mobile payment: a perspective of technology migration. Technol. Forecast. Soc. Change 173, 121074 (2021)
Kemp, S.: Data report (2021). https://datareportal.com/reports/digital-2021-indonesia. Accessed 07 June 2021
Kjellman, A., Björkroth, T., Kangas, T., Tainio, R., Westerholm, T.: Disruptive innovations and the challenges for banking. Int. J. Financ. Innov. Bank. 2(3), 232–249 (2019)
Lee, In., Shin, Y.J.: Fintech: ecosystem, business models, investment decisions, and challenges. Bus. Horizon 61(1), 35–46 (2018)
Kotler, K.: Marketing Management. 14th edn. Pearson Education (2012)
Leong, K., Sung, A.: FinTech (financial technology): what is it and how to use technologies to create business value in fintech way? Int. J. Innov. Manag. Technol. 9(2), 74–78 (2018)
Lin, M., Prabhala, N.R., Viswanathan, S.: Judging borrowers by the company, they keep: friendship networks and information asymmetry in online peer-to-peer lending. Manage. Sci. 59(1), 17–35 (2013)
Liu, Y., Hong, Z., Zhu, J., Yan, J., Qi, J., Liu, P.: Promoting green residential buildings: residents’ environmental attitude, subjective knowledge, and social trust matter. Energy Policy 112, 152–161 (2018)
Mangold, W., Babakus, E.: Service quality: the front-stage vs. the back-stage perspective. J. Serv. Mark. 5(4), 59–70 (1991)
Millar, C., Lockett, M., Ladd, T.: Disruption: technology, innovation, and society. Technol. Forecast. Soc. Chang. 129, 254–260 (2018)
Moon, B.: Paradigms in migration research: exploring’ moorings’ as a schema. Prog. Hum. Geogr. 19(4), 504–524 (1995)
Njite, D., Kim, W.G., Kim, L.H.: Theorizing consumer switching behavior: a general systems theory approach. J. Qual. Assur. Hosp. Tour. 9(3), 185–218 (2008)
Rizal, M., Maulina, E., Kostini, N.: Fintech as one of the financing solutions for SMEs. AdBispreneur: J. Pemikiran Dan Penelitian Adm. Bisnis Dan Kewirausahaan 3(2), 89–100 (2019)
Romānova, I., Kudinska, M.: Banking and fintech: a challenge or opportunity? In: Contemporary Issues in Finance: Current Challenges from Across Europe, pp. 21–35 (2016)
Sánchez García, I., Curras-Perez, R.: Is satisfaction a necessary and sufficient condition to avoid switching? The moderating role of service type. Eur. J. Manag. Bus. Econ. 29(1), 54–83 (2020)
Salazar-Ordόñez, M., Rodríguez-Entrena, M., Cabrera, E.R., Henseler, J.: Understanding product differentiation failures: the role of product knowledge and brand credence in olive oil markets. Food Qual. Preference 68, 146–155 (2018)
Scheffel, P.: Taming the beast: a scientific definition of fintech. J. Innov. Manag. 4(4), 32–54 (2016)
Schwab, K.: The Fourth Industrial Revolution. World Economic Forum, Cologny/Geneva (2016)
Sun, W., Dedahanov, A.T., Shin, H.Y., Kim, K.S.: Switching intention to crypto-currency market: Factors predisposing some individuals to risky investment. PLoS One 15(6), e0234155 (2020)
Vyas, V., Raitani, S.: Drivers of customers’ switching behavior in the Indian banking industry. Int. J. Bank Mark. 32(4), 321–342 (2014)
Wan, Q., Chen, D., Shi, W.: Online peer-to-peer lending decision making: Model development and testing. Soc. Behav. Personal. Int. J. 44(1), 117–130 (2016)
Yoon, Y., Li, Y., Feng, Y.: Factors affecting platform default risk in online peer-to-peer (P2P) lending business: an empirical study using Chinese online P2P platform data. Electron. Commer. Res. 19(1), 131–158 (2019)
Zhong, W., Jiang, T.: Can internet finance alleviate the exclusiveness of traditional finance? Evidence from Chinese P2P lending markets. Financ. Res. Lett. 40, 101731 (2021)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Baruna, S.S.A., Dalimunthe, Z., Triono, R.A. (2023). Factors Affecting Investor Switching Intention to Fintech Peer-To-Peer Lending. In: Alareeni, B., Hamdan, A. (eds) Sustainable Finance, Digitalization and the Role of Technology. ICBT 2021. Lecture Notes in Networks and Systems, vol 487. Springer, Cham. https://doi.org/10.1007/978-3-031-08084-5_7
Download citation
DOI: https://doi.org/10.1007/978-3-031-08084-5_7
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-08083-8
Online ISBN: 978-3-031-08084-5
eBook Packages: EngineeringEngineering (R0)