THE ROLE OF PEER-TO-PEER LENDING AND DIGITAL TRANSFORMATION IN ENHANCING RURAL BANK PERFORMANCE: EVIDENCE FROM A SYSTEMATIC LITERATURE REVIEW

Abstract

The rapid advancement of financial technology (fintech), particularly peer-to-peer (P2P) lending, alongside digital transformation, has significantly reshaped the banking industry, including rural banks (BPR). This study aims to systematically review the impact of P2P lending and digital transformation on rural bank performance, with Good Corporate Governance (GCG) as a moderating variable. This research employs a Systematic Literature Review (SLR) approach using the PRISMA framework. A total of 120 articles were identified from Google Scholar, SINTA, and Scopus databases published between 2017 and 2025. After screening and eligibility processes, 40 articles were selected for in-depth analysis. The findings indicate that digital transformation has a positive effect on bank performance, particularly in improving efficiency and financial inclusion. Meanwhile, P2P lending shows mixed effects, acting both as a competitor and a strategic partner. Furthermore, GCG is identified as a critical moderating factor that strengthens the relationship between digital transformation and bank performance. This study contributes by integrating fintech, digital maturity, and governance perspectives in rural banking.