The Impact of Personalization Features Toward Customer Trust on Peer to Peer Lending Platform

Abstract

Abstract. Background: Customer trust in the intermediary becomes an essential things in the development of peer to peer lending platform regarding the existing of danger of virtual environment. One of the factors which influence customer trust is service quality which one of them is refers to personalization. In implementing personalization, there will be perceived efficiency which is a form of better service. However, there is still no research about these factors which is necessary for peer-to-peer development. Objective: The primary objective is to analyze how personalization impact customer trust in the peer-to-peer lending platform. Method: This research using quantitative method through distributed online questionnaire to the population in Bandung, in the range of age 20-24 years old with the requirement of having an Indonesian ID and bank account. After that, all collected data were analyzed using PLS-SEM. Results: Personalization has significantly influences efficiency and trust in intermediary as well as efficiency to trust in intermediary. In addition, there’s an indirect effect from personalization to trust in intermediary through efficiency eventhough it’s not as strong as direct effect. Conclusion: Personalization is positively and significantly affect customer trust in intermediary, both in direct form and in indirect form through perceived efficiency. However, indirect effect is not as strong as direct effect.

Keywords: Peer-to-Peer Lending; Personalization Features; Trust in Intermediary