Factors Affecting the Individual Users’ Accessibility to Peer-To-Peer Lending in Transitional Country: Empirical Research in Vietnam

Abstract

Peer-to-peer lending is considered one of the most successful yet risky inventions of the Fintech wave in recent years. The trend of peer-to-peer lending service boom has an impressive impact on developing countries, including Vietnam - a country with nearly 60% of the working-age population, shopping and spending needs are skyrocketing in the last five years. Additional downfalls of recent peer-to-peer markets have brought up more concerns and arguments to the subject. Therefore, this research aims to investigate the approachability of peer-to-peer lending in transitional economies with the case of Vietnam. Primary data is based upon questionnaire surveys with a quantitative method to test data. The results show that the demography and finance factors do not have an impact or have a low impact on the accessibility of users to peer-to-peer lending. In contrast, the social capital factor plays a leading role of indicating determinants of the accessibility of individuals users to peer-to-peer lending in the emerging market context. Based on these findings, recommendations were proposed to enhance the accessibility of individual users to peer-to-peer lending.