A correlational study between the accessibility of money lending applications and frequency of indebtedness of its users in the Fifth District of Manila / Bautista, Christian Jason B., Bodollo, Ejandra Nicole B., Durante, Florence C., Mahinay, Angela A., San Diego, Trisha Lynne M. 6

Research Paper: (BSBA major in Financial Management) - Pamantasan ng Lungsod ng Maynila, 2023. 56

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Abstract A Correlational Study between the Accessibility of Money Lending Applications and the Frequency of Indebtedness of their Users. Researchers conducted this study because technology keeps evolving; new applications were made for everyone to access the world. Even money lending can be done without acknowledging the financial institutions due to the rise of money lending apps. In the Philippines, money lending apps are popular with Filipinos because they are easy to access, making money lending online with just a simple qualification. Money lending apps such as GLoan by Gcash, TALA, and BillEase are the top apps users consider when they want to borrow a loan. This study wants to know if there is a relationship between the accessibility of these money lending applications in providing funds and the frequency of indebtedness that the users experience. The researchers will limit the study only to the users who had experience with the three (3) apps, such as GLoan by Gcash, TALA, and BillEase, who also should be living in the Fifth District of Manila. Researchers commit to this study to help the users; this can help them to be more educated on the application. Additionally, to the app creators, the study findings can help them see what challenges their users experience and how they can improve the app more. The Securities and Exchange Commission (SEC) will also benefit from this study, where they can make new regulations to help users be safer. This can be a way for them to see if this type of lending, which is done online, can be considered as a New way of Money Lending. The study will focus on the accessibility of these money-lending apps and the possibility of being in debt that comes with it. Other challenges and problems that might occur is the limit of the researchers. As the study progressed, researchers used the Theory of Indebtedness as the study's Theoretical Framework. This theory gives the basic knowledge of the debt and the magnitude it brings to the debtor. The theory will relate to the dependent variable of the study, Frequency of indebtedness, that comes with the accessibility of money lending apps. Researchers also include numerous past studies that are related to this research. The researcher will close the gap that these studies failed to dive into. The gap regarding the Frequency that the users will be in debt that they might face when they access these money lending apps and how these apps are accessible after you sign up. This study includes the independent, dependent, and intervening variables. The Independent variable, Accessibility of Money Lending Applications, is the independent variable because it is the variable that affects the dependent variable, which is the frequency of indebtedness. The Intervening variable, Financial Literacy, affects the independent and dependent variables. Financial Literacy will affect a user's experience; being educated will help the users or individuals avoid facing financial problems. The study inputs the emerging money lending apps GLoan by Gcash, TALA, and BillEase. Then, the study will process information with a survey questionnaire. To know the users' experience, accessibility of the app, and the frequency of indebtedness. After the survey, the results will be validated, and the conclusion and recommendation will follow. The output of this study will be that the researchers will know if there is a relationship between the Accessibility of Money Lending Applications and the Frequency of Indebtedness of their users. For the research design, three approaches were used: correlational, quantitative, and descriptive. The correlational-quantitative method was utilized to get a deeper understanding and knowledge of the respondents through numerical and statistical data, which would aid in determining whether there is a relationship between the accessibility of money lending applications and the frequency of indebtedness. The descriptive research design was selected for further study since it aids in obtaining a full grasp of the research topic so that it may be appropriately answered. Purposive sampling was the method used to collect data for this research. The study used this to identify people in the population who are likely to have particular characteristics and experiences and if the users have experience applying for money lending. The study used the Raosoft sample size calculator website to calculate the sample size, which is 385. The study employed Pearson-R correlation analysis to determine whether there is a strong connection between one variable and another for inferential statistics. In addition, the correlations between pairs of variables, correlations within and across sets of variables, the degree to which a relationship is linear, and whether its direction is increasing or decreasing are all evaluated. The study's respondents will be the users of the three selected money lending applications, GLoan by GCash, Tala, and BillEase; they already experienced getting a loan from the said apps and should be residents of the Fifth District of Manila. The significant findings of the study are the following: GLoan by GCash and Banks are the respondents' preferred choice when they are in need of money. However, Money Lending Apps often are the go-to place when they are in need of money. Also, most respondents discovered the Money Lending Application they use through Social Media Platforms. The study found that most respondents or users used the loan they acquired primarily for their needs, such as household bills or expenses, while others for their wants, such as shopping. Additionally, the result of the study shows that the respondents often go more to money lending applications when faced with unexpected scenarios. Furthermore, based on the study's findings, it rejects the null hypothesis and accepts the alternative hypothesis. It was found that there is a Weak Positive Significant Relationship between the accessibility of money lending applications and the frequency of indebtedness. Based on the findings, District 5 respondents picked Money Lending Apps as their preferred method of borrowing money. It demonstrates how the ways of borrowing money, including banks or informal credit systems (5'6 and friends or family), are gradually being replaced by money lending apps. Money lending applications are becoming the norm, particularly for Filipinos from the lower to middle class. Because individuals use these apps to receive loans anytime, they need money and prefer them to banks because it is more practical, quick, and user-friendly. Respondents to the survey stated that money lending applications are moderately accessible. According to the findings, participants can utilize the three chosen applications, regardless of their age or financial situation, whether they are a student, employees, housewives, business owners, independent freelancers, or unemployed. Since most respondents in this survey used social media, everyone could access the money lending applications because most Filipinos have accounts there. Most respondents indicated they might borrow money because they need it to pay off household bills or expenses. However, it shows that shopping significantly impacts most respondents' desire to borrow money based on their wants. It reveals that Unexpected Scenarios are the most frequent justification for respondents to borrow money based on occasions or circumstances. The accessibility of money lending applications and the frequency of indebtedness have a Weak Positive Relationship. The study rejects the null hypothesis and accepts the alternative hypothesis since its p-value is less than the level of significance. To avoid making excessive loan applications, users must be financially literate and develop plans and budgeting to repay the loan on time. Additionally, borrowers must understand that they are not required to borrow money if they cannot repay it, even if the online lending apps are accessible. More importantly, the Securities and Exchange Commission shall intervene to improve the user experience and usage of online lending apps by re-evaluating existing regulations and making new regulations to cater to the demands and suggestions of Users.

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