Borrower switching behaviour on a P2P lending platform: a study of switching path analysis technique

Despite borrower disloyalty being a concern, path decisions must still be analysed. Using the switching path analysis technique, this study analysed the triggers, determinants, and consequences of borrower switching. A non-probability sampling method was employed for this analysis. Specifically, snowball sampling was used to collect data because of limited access to Indonesian peer-to-peer lending (P2P) borrowers in borrower lending groups. Snowball sampling was used to recruit more P2P lending borrowers in Indonesia. The sampling method included 31 participants. The findings revealed the following: (1) triggers (situational, influential, and reactional); (2) switching determinants (push, pull, and swayer); and (3) consequences of switching (ir-path or re-path). This study contributes to the service literature by providing a sequential process lens to address how borrowers switch or stop with one P2P lending provider. The findings provide practitioners with data that will allow them to learn how borrowers switch and prevent them from switching.