Changes in Risk-Taking Behavior of Financial System Subjects (Household) in the Digital Era

  • Fachmi Pachlevi Yandra, Ivana Oktarina Sopacua

Abstract

The development of P2P lending fintech in Indonesia is increasingly unstoppable. There is ease of digital unsecured loans and fast process due to online-based credit applications. However, these facilities are followed by high-interest loans. It is not in accordance with the real spirit of fintech that supposed to be to create economic efficiency by cutting high transaction costs in the conventional financial system. In turn, people in many household sectors apply for digital unsecured loans without considering risk. This phenomenon has to increase potential bad loans in the household sector. Finally, it will disrupt the stability of financial system as a whole. This research aims to conduct laboratory experiments to investigate the effect of digital unsecured loans and the DTI ratio on changes in risk-taking behavior of the household sectors. Research data collection was carried out through 2 x 2 between-subjects experimental methods. Experiments were carried out using paper & pencil tests. The experimental task given is a simulation of short-term credit applications. ANOVA test results show that the presence of digital unsecured loans increases the household sector risk-taking behavior, the DTI ratio can be used as an individual internal control to prevent increased risk-taking behavior in the digital era.

Published
2020-05-09
How to Cite
Fachmi Pachlevi Yandra, Ivana Oktarina Sopacua. (2020). Changes in Risk-Taking Behavior of Financial System Subjects (Household) in the Digital Era. International Journal of Advanced Science and Technology, 29(10s), 45 - 52. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/14387
Section
Articles