Journal of Business Research· 2026Q1
Lending in Need: Natural Disaster Shocks and Online Borrowing in Indonesia
- 0citations
- Q1SCImago
- 2026year
Short summary
Natural disasters in Indonesia led to a 2.7% increase in daily borrowing amounts on a major FinTech platform, particularly in the first six days after events like the Semeru eruptions.
AI-generated from the title and abstract; the full text is not read.
Key points
- Disaster exposure is positively linked to increased borrowing amounts on Indonesian FinTech platforms.
- A 2.7% increase in daily borrowing was observed following the Semeru eruptions.
- The impact on borrowing amounts was most pronounced in the first six days after an eruption.
- Loan duration, new-borrower participation, and overdue amounts were not significantly affected by disaster exposure.
AI-generated from the title and abstract; the full text is not read.
Abstract
Natural disasters can generate urgent household liquidity needs, yet little is known about how borrowing through digital lending platforms responds to disaster exposure. Using approved-loan records from a major FinTech platform in Indonesia, this study examines the relationship between natural disasters and online borrowing through fixed-effects panel analysis and a supplementary matched difference-in-differences analysis. The results show that disaster exposure is positively associated with borrowing amounts at both the provincial and individual levels, while the relationships with new-borrower participation, loan duration, and overdue amounts are not statistically significant. Further analysis of the December 2021 and December 2022 Semeru eruptions reveals a positive short-term borrowing response, with a coefficient of 0.027 for log-transformed daily borrowing and larger estimates during the first six days following the eruptions. Although the matched analysis provides exploratory evidence within a short event window, its findings are consistent with the broader pattern observed in the panel analysis. Overall, the study highlights borrowing amounts as a key margin of adjustment in digital lending following natural disasters, offering new evidence on how FinTech borrowing responds to localized economic shocks.
The authors' abstract, as published at the source. Journal of Business Research, 2026 · DOI ↗
Continue with a free account
Ask the paper: 3 free questions a day about this paper; save it, get its citation, new summaries every day for your field. Takeaways are Premium.
Continue free on the webSign in with Google or Apple; no card needed. You come back to this paper.
On your phone:
Management Information SystemsBusiness, Management and Accounting