The Rising Popularity of Online Lending in Indonesia: The New Opportunities for Banks (Push-Pull Mooring Perspective)

Audisty Prana Hardayu *

Tanjungpura University, Indonesia.

Nur Afifah

Tanjungpura University, Faculty of Economics and Business, Pontianak City, Indonesia.


Tanjungpura University, Faculty of Economics and Business, Pontianak City, Indonesia.

*Author to whom correspondence should be addressed.


Background and Purpose: Fintech lending, also known as online lending, has experienced fast growth in Indonesia in recent years through digital platforms. Online lending is supplanting the financial intermediation function hitherto predominantly held by banks. This study examines the factors influencing Indonesians' inclination to transition from traditional banking services to online lending. It seeks to understand the appeal of online lending, which has enabled it to supplant Indonesian banks in financial intermediation, employing the Push-Pull Mooring theory.

Methodology: This study used a nonprobability sampling technique to choose 200 respondents who are consumers of banking services and have transitioned to online lending. Data was gathered through Google Forms and subsequently analyzed utilizing SEM-PLS 4.0.

Findings: The findings indicate that pull variables exert the most significant impact on the inclination to transition to online lending, with push variables following closely behind. The variable "switching barrier" does not influence the intention to switch to online lending. However, switching costs and low financial literacy significantly impact the switching barrier. Additionally, the moderation effect does not enhance the relationship between dissatisfaction with banking and the appeal of online lending. Online lending has attracted users by providing a value proposition that includes easy digital onboarding, quick loan processing and payout, and unsecured credit options for unbanked customers. The influence of brand loyalty on customer choices when selecting an online lender is minimal.

Contributions: This study aims to enhance marketing theory and consumer behavior understanding by investigating the factors influencing Indonesians' intention to transition from traditional banking services to online lending, specifically focusing on Push-Pull and Mooring factors.

Keywords: Online lending, push pull mooring, switching intention, banking

How to Cite

Hardayu, Audisty Prana, Nur Afifah, and Mustaruddin. 2024. “The Rising Popularity of Online Lending in Indonesia: The New Opportunities for Banks (Push-Pull Mooring Perspective)”. Asian Journal of Economics, Business and Accounting 24 (6):523-39.


Download data is not yet available.


OJK OJ. Edukasi dan perlindungan konsumen. Retrieved from Literasi Keuangan; 2023.

Zhao Y. The Fintech Revolution: Innovations Reshaping the Financial Industry. Highlights in Business, Economics and Management. 2023;15. Available:

Gahlot CSS, Ghosh S. Emerging Opportunities and Challenges in FinTech Industry – A Comparative Study of India with Other Jurisdictions; 2023. Available:

Harjono DK. Regulations of Lending Business Activities via Online Applications (Peer-to-Peer Lending): Financial Technology Activities in Legal Terms. OPSearch: American Journal of Open Research. 2022;1(3).


Tan D. Demystifying the proliferation of online peer-to-peer lending in Indonesia: Decoding fintech as a regulatory challenge. Asian Journal of Law and Society. 2023;10(3). Available:

Ozili KP. Determinants of FinTech and BigTech lending: the role of financial inclusion and financial development. Journal of Economic Analysis; 2023. Available:

Mazure G. Financial Platforms as Alternative Financial Instrument to Crediting in Europe. Research for Rural Development. 2022;37. Available:

Al-Naimi AA, Al Abed S, Farooq U, Qasaimeh G, Alnaimat MA. Impact of Open Banking Strategy and Fintech on Digital Transformation. 2nd International Conference on Business Analytics for Technology and Security, ICBATS; 2023. Available:

Bansal HS, Taylor SF, James YS. “Migrating” to new service providers: Toward a unifying framework of consumers’ switching behaviors. In Journal of the Academy of Marketing Science. 2005;33:1.


Moon B. Paradigms in migration research: Exploring ‘moorings’ as a schema. Progress in Human Geography. 1995; 19 (4). Available:

Thoeni AT, Marshall GW, Campbell SM. A resource-advantage theory typology of strategic segmentation. European Journal of Marketing. 2016;50(12). Available:

Cheng CCJ, Yang CL, Sheu C. The link between eco-innovation and business performance: A Taiwanese industry context. Journal of Cleaner Production. 2014;64.


Zhou T. Examining user switch between mobile stores: A push-pull-mooring perspective. Information Resources Management Journal. 2016;29(2).


Kim MK, Chang Y, Wong SF, Park MC. The effect of perceived risks and switching barriers on the intention to use smartphones among non-adopters in Korea. Information Development. 2015;31 (3).


Cheng S, Lee SJ, Choi B. An empirical investigation of users’ voluntary switching intention for mobile personal cloud storage services based on the push-pull-mooring framework. Computers in Human Behavior. 2019;92.


Ye C, Potter R. The role of habit in post-adoption switching of personal information technologies: An empirical investigation. Communications of the Association for Information Systems. 2011;28(1).


Fan L, Zhang X, Rai L, Du Y. Mobile payment: The next frontier of payment systems? - an empirical study based on push-pull-mooring framework. Journal of Theoretical and Applied Electronic Commerce Research. 2021;16(2).


Kabadayi S. Customers’ dissatisfaction with banking channels and their intention to leave banks: The moderating effect of trust and trusting beliefs. Journal of Financial Services Marketing. 2016;21(3).


Moraru AD, Duhnea C, Mieilă M. Ghiță-Mitrescu S, Ilie M, Necula AI. The Challenge of Banking Services Development – Giving ITS Rightful Place to Customer Satisfaction. Journal of Business Economics and Management. 2022;23(3). Available:

Baruna SSA, Dalimunthe Z, Triono RA. Factors Affecting Investor Switching Intention to Fintech Peer-To-Peer Lending. Lecture Notes in Networks and Systems. 2023;487. Available:

Foong WM, Yeng LC. Customer intention to stay with banks: The role of virtual service. International Journal of Supply Chain Management. 2018;7(4).

Wang H, Overby EM. How Does Online Lending Influence Bankruptcy Filings? Management Science. 2022;68(5).


Calvo-Porral C, Lévy-Mangin JP. Switching behavior and customer satisfaction in mobile services: Analyzing virtual and traditional operators. Computers in Human Behavior. 2015;49. Available:

Afandi MA. Switching Intentions Among Millennial Banking Customers to Fintech Lending. International Journal of Islamic Economics and Finance (IJIEF). 2020;3(2). Available:

Alfadri F, Aini N, Siregar L. Public Attitude to Online lendings. Journal of Islamic Financial Technology. 2022;1(2).


Maier E. Supply and demand on crowdlending platforms: connecting small and medium-sized enterprise borrowers and consumer investors. Journal of Retailing and Consumer Services. 2016; 33.


Ali S, Simboh B, Rahmawati U. Determining Factors of Peer-to-Peer (P2P) Lending Avoidance: Empirical Evidence from Indonesia. Gadjah Mada International Journal of Business. 2023; 25(1).


Zhang BZ, Ziegler T, Rosenberg R, Squire R, Garvey K, Burton J, Wardrop R, Hernadez EA. Breaking New Ground: The Americas Alternative Finance Benchmarking Report. SSRN Electronic Journal; 2020.


Niya H, El Bousaadani A, Radid M. Adoption of Technological Solution on Fintechs Using Training Engineering: Case of Health Sector. Journal of Theoretical and Applied Information Technology. 2022;100(18).

Chou EY, Lin CY, Chen TT, Huang HC. Member Lock-In and Knowledge Break-Out in SNS Groups: Integrating the “Pull-In,” “Push-Back,” and “Mooring” Effects: An Abstract. In Developments in Marketing Science: Proceedings of the Academy of Marketing Science; 2019. Available:

Kang WM, Chi YD, Kim SS, Lee SH, Gim GY. The intention of switching in system maintenance using migration theory. Journal of Engineering and Applied Sciences. 2018;13(18). Available:

Evanschitzky H, Stan V, Nagengast L. Strengthening the satisfaction loyalty link: the role of relational switching costs. Marketing Letters. 2022;33(2). Available:

Ghazali E, Nguyen B, Mutum DS, Mohd-Any AA. Constructing online switching barriers: examining the effects of switching costs and alternative attractiveness on e-store loyalty in online pure-play retailers. Electronic Markets. 2016;26(2). Available:

Zakiy M. The Moderating Effect of Switching Cost on the Influence of Price and Service Quality Towards Switching Intention; 2019. Available:

Ganaie TA, Bhat MA. Switching Costs and Customer Loyalty: A Review of literature. International Journal of Management and Development Studies. 2021;10(05). Available:

Kim S, Choi MJ, Choi JS. Empirical study on the factors affecting individuals’ switching intention to augmented/virtual reality content services based on push-pull-mooring theory. Information (Switzerland). 2020;11(1). Available:

Hakim ML. Pengaruh Financial Risk dan Performance Risk terhadap Switching Barrier Nasabah PT. BPRS Lantabur Tebuireng Mojokerto. Pascasarjana Universitas Negeri Sunan Ampel. 2019;2 (2):2.

Tirta Dewi NPA, Yadnyana IK, Yasa GW, Wirajaya IGA. Faktor-Faktor Yang mempengaruhi Penggunaan Fintech Lending Pada Generasi Milenial. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana; 2022.


Lo Prete A. Digital and financial literacy as determinants of digital payments and personal finance. Economics Letters. 2022;213. Available:

Gibson J, McKenzie D, Zia B. The impact of financial literacy training for migrants. World Bank Economic Review. 2014; 28(1). Available:

Zargar P, Farmanesh P. Satisfaction and Loyalty in Local Food Festival: Do Switching Barriers Matter? SAGE Open. 2021;11(4). Available:

Chen MF, Wang LH. The moderating role of switching barriers on customer loyalty in the life insurance industry. Service Industries Journal. 2009;29(8). Available:

Tesfom G, Birch NJ. Do switching barriers in the retail banking industry influence bank customers in different age groups differently? Journal of Services Marketing. 2011;25(5). Available:

Jin J, Fan B, Dai S, Ma Q. Beauty premium: Event-related potentials evidence of how physical attractiveness matters in online peer-to-peer lending. Neuroscience Letters. 2017;640. Available:

Cheung GW, Cooper-Thomas HD, Lau RS, Wang LC. Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations. Asia Pacific Journal of Management; 2023. Available:

Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 25 (Sembilan). In Semarang, Universitas Diponegoro; 2018.

Ghozali I, Latan H. Partial Least Square (PLS) Konsep, Teknik dan Aplikasi menggunakan program SmartPLS 3.0. Semarang : Badan Penerbit UNDIP. Partial Least Squares: Konsep, Teknik, Dan Aplikasi Menggunakan Program SmartPLS 3.0 Edisi 2 (2nd Ed.). Universitas Diponegoro Semarang. 2016;4(10).

Wang P, Zheng H, Chen D, Ding L. Exploring the critical factors influencing online lending intentions. Financial Innovation. 2015;1:1-1.

Satoto SH, Putra HNK. The Effect of Financial Literacy and other Determinants on the Intention to Use Electronic Money: Consumer Behavior as a Variable Mediation. International Journal of Applied Business and International Management. 2021;6(3). Available:

Kaur G, Sharma RD, Mahajan N. Segmentation of bank customers by loyalty and switching intentions. Vikalpa. 2014; 39(4). Available:

Atobishi T, Bahna M, Fogarassy C. The main influencing factors of mobile banking adoption in the open innovation business environment (Case study). Hungarian Agricultural Engineering. 2021;40. Available:

Jovović M, Mišnić N, Pejović B, Mijušković M. Customer Satisfaction and Switching Intentions of Banking Services End-Users in Montenegro. Journal of Central Banking Theory and Practice. 2023;12(1).


Jain R, Vanzara R, Sarvakar K. The Rise of AI and ML in Financial Technology: An In-depth Study of Trends and Challenges. In: Kumar, A., Mozar, S. (eds) Proceedings of the 6th International Conference on Communications and Cyber Physical Engineering. ICCCE 2024. Lecture Notes in Electrical Engineering. 2024; 1096.