The Role of Peer to Peer Lending in Increasing Funding for Micro, Small, and Medium Enterprises

Abstract

This study aims to describe the potential of MSMEs in Indonesia and the role of technology in the industrial era 4.0, especially in alternative funding in the form of Peer to Peer (P2P) Lending in providing funding solutions for MSMEs. This study uses a literature review including academic studies on MSME financing in Indonesia by using the results of previous studies and surveys on Indonesian MSME. The development of P2P Lending is the solution for MSMEs with no access to financial aid from banks.

Keywords

• driving factors for business productivity
• fin-tech
• increase gross domestic product
• strengthen small businesses