Exploring online informal loans: Expanding UTAUT2 in consumer credit behavior throughout urban communities in Indonesia

Abstract

Purpose ‒ This study examines factors shaping urban Indonesians’ intentions and behaviors toward online loan apps amid rising illegal lending, with over 8,200 complaints filed to OJK in early 2024. It extends UTAUT2 by substituting facilitating conditions with perceived behavioral control (PBC) and adding social influence and source trustworthiness.

Design/Methodology/Approach ‒ Data from 267 urban respondents were collected via purposive, convenience, and snowball sampling and analyzed using PLS-SEM. The measurement model was validated for reliability and validity; Harman’s test confirmed no severe common method bias.

Findings ‒ Results indicate that habit, hedonic motivation, social influence, and price value are significant predictors of intention and actual use, with habit emerging as the strongest driver. Effort expectancy, performance expectancy, and PBC show no direct effects on intention. Social influence significantly shapes habit, hedonic motivation, and PBC.

Originality/Value ‒ This study is one of the first to apply an extended UTAUT2 to informal online lending in Indonesia, offering a more comprehensive view of user agency.

Research Limitations/Implications ‒ Findings are limited to urban cross-sectional data, restricting generalizability. Broader longitudinal studies are encouraged.

Practical Implications ‒ Policymakers and developers should foster habitual use, leverage social networks, and ensure transparent, affordable pricing to support responsible lending