Impact of Fintech Companies to Household Consumption- Evidence from Medan
Achmad Afriadi Trisatya (a*), Isfenti Sadalia (b)

a. Universitas Sumatera Utara
b. Universitas Sumatera Utara

Abstract

Financial Technology (Fintech) companies are rising in Indonesia in the past few years. Their relatively user-friendly, ease-of-use, and flexibility to loan money rather than banking institutions give beneficial to some parties, especially individual or household. This study explores the rise of fintech companies in Indonesia to household consumption, especially in Medan. Data are gathered from questionnaires to find out whether individual or household who loan from fintech are using their loan money to consume more or not.
This study results are majority of individual in Medan who are using fintech to consume more and/or to elevate their lifestyle. They are not able to use the money for more productive use due to the limitations of money borrowed. This study suggest that government should be able to positively guide people to not only use fintech as a backup plan to consume more or to elevate lifestyle but to use them as a backup source to be more productive or becoming entrepreneurs.

Keywords: fintech, consumption, household, entrepreneurship

Topic: Financial Management and Accounting