The Impact of COVID-19 on FinTech Lending in Indonesia: Evidence From Interrupted Time Series Analysis

Fuente: arXiv
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Auteur principal: Khaliq, Abdul
Format: Preprint
Publié: 2025
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author Khaliq, Abdul
author_facet Khaliq, Abdul
contents This study measures the impact of COVID-19 outbreaks on financial technology (FinTech) lending in Indonesia. Using monthly FinTech data published by Financial Services Authority (OJK) over the period 2018M02-2021M04, the article examines the impact of COVID-19 started on March 2020 on FinTech by adopting an interrupted time series (ITS) experiment. The estimation shows that the COVID-19 outbreaks negatively affect changes in FinTech lending level in Indonesia, but the changes in the trend are positive. Moreover, the COVID-19 has been found to have a negative and statistically significant effect on the 90-day success loan settlement rate level. However, COVID-19 has positive and statistically significant effects on the 90-day default rate of loan repayment level. These estimation results recommend that the financial services authority of Indonesia should intensively promote various innovative financial technology (FinTech) lending post-COVID-19 to increase digital financial inclusion by providing peer to peer lending (P2P) to unbanked populations.
format Preprint
id arxiv_https___arxiv_org_abs_2505_06655
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle The Impact of COVID-19 on FinTech Lending in Indonesia: Evidence From Interrupted Time Series Analysis
Khaliq, Abdul
General Economics
Economics
This study measures the impact of COVID-19 outbreaks on financial technology (FinTech) lending in Indonesia. Using monthly FinTech data published by Financial Services Authority (OJK) over the period 2018M02-2021M04, the article examines the impact of COVID-19 started on March 2020 on FinTech by adopting an interrupted time series (ITS) experiment. The estimation shows that the COVID-19 outbreaks negatively affect changes in FinTech lending level in Indonesia, but the changes in the trend are positive. Moreover, the COVID-19 has been found to have a negative and statistically significant effect on the 90-day success loan settlement rate level. However, COVID-19 has positive and statistically significant effects on the 90-day default rate of loan repayment level. These estimation results recommend that the financial services authority of Indonesia should intensively promote various innovative financial technology (FinTech) lending post-COVID-19 to increase digital financial inclusion by providing peer to peer lending (P2P) to unbanked populations.
title The Impact of COVID-19 on FinTech Lending in Indonesia: Evidence From Interrupted Time Series Analysis
topic General Economics
Economics
url https://arxiv.org/abs/2505.06655