Determinants Influencing Borrowing Decisions via Online Applications in the Digital Economy Era

Abstract

This research investigates the determinants influencing the decision to borrow money via online applications in the digital economy era. Utilizing a quantitative research approach, data were collected from 691 Thai individuals through convenience sampling. The study employed binary logistic regression for statistical analysis. The findings reveal several factors significantly impact the decision to use online borrowing applications. Specifically, age, frequency of financial transactions, the perceived attractiveness of borrowing through applications, and awareness of the service's terms and conditions all positively affect the decision-making process. Older individuals who frequently engage in financial transactions and find the borrowing process via apps appealing are more likely to opt for such services. Additionally, a higher level of understanding regarding the terms and conditions of borrowing also contributes to a more positive borrowing decision. These insights are instrumental in refining online lending services to better align with user preferences and requirements. Furthermore, the results provide valuable guidance for policymakers in developing strategies and regulations to enhance digital financial services, ensuring they are more accessible and user-centric. The study's implications extend to improving both digital lending platforms' practical and regulatory aspects.