Generational Differences in Repeat Borrowing Attitudes: A Study of Millennials and Generation Z in Peer-to-Peer Lending

Abstract

Purpose: The aim of this study is to understand generational differences in attitudes towards repeat borrowing in peer-to-peer (P2P) lending. Design/methodology/approach: The study was conducted through a survey of 207 P2P lending users in Indonesia. The study was conducted on the Millennials and Generation Z generations which were compared with the previous, older generation. Data were analyzed using linear regression analysis. Findings: The results of this study found that there were differences in attitudes towards repeat borrowing in P2P lending between the younger generation and the older generation. Attitudes towards repeat borrowing in P2P lending are higher in younger groups which are influenced by the perceived usefulness, perceived ease of use, and risk perception. Research limitations/implications: The model in this study includes the generation factor (ordinal scale) in the TAM model. This is a limitation in testing the role of attitude as a mediator of the influence of perceived usefulness, perceived ease of use, risk perception, and generation segment on intention. Generation Z are the young generations who represent the future of the industry, so it is important to understand their behavior when making financial decisions. Understanding behavior is important for policies such as financial literacy for wiser decisions in financial decisions. Originality/value: This study adds the influence of generational differences as a factor that influences attitudes towards repeat borrowing in P2P lending.