Data source_P2P Lending Platforms in MalaysiaThe Awareness Among Young Adults.xlsx

Since 2016, the Securities Commission (SC) in Malaysia has given licenses to only 11 P2P lending platforms. Such lending platforms are expected to disrupt lending services of traditional lenders in the coming years. However, being still in their infant stages, it is important to know the extent to which such platforms are made known to potential investors out there. This study aims to examine the extent to which young investors are aware of the presence of the 11 P2P lending platforms in Malaysia. Using non-probability sampling method, a pilot study was carried out with a sample of 65 undergraduate students, majoring in Finance and Accounting. An online questionnaire was designed with three main parts: demographic, financial literacy, and P2P lending awareness. Findings show that more than half of respondents in the sample are not aware of the existence of P2P lending platforms in Malaysia. Most of respondents are are financially literate at certain degrees. Those who are aware of their presence, underestimated the potential high level of their default rates, and misunderstood that investors would be fully protected by such platforms when a loan is default. Findings of the study shred lights on the current awareness of P2P lending platforms in Malaysia among young adults, who are potential investors of such platforms in the coming years.