Peer-to-peer (P2P) borrowing and its effect on financial well-being in Ghana

The study develops a unified model to examine how P2P borrowing influences financial well-being in Ghana. Based on 550 validated survey responses collected nationwide from January to June 2025, we used Partial Least Squares-Structural Equation Modelling (PLS-SEM) and R programming for data analysis. P2P borrowing was evaluated through five key factors: intention, motivation, perceived benefit, perceived risk, and trust. The analysis showed a significant positive effect of P2P borrowing on financial well-being. However, perceived risk, which serves as an indicator for P2P, demonstrates a negative effect on financial well-being. Based on these results, the study recommends expanding financial literacy programmes in Ghana to include targeted modules on P2P borrowing. The programmes should emphasise both their benefits and potential risks. Additionally, regulators and participants involved in P2P borrowing should collaborate to foster trust and minimise perceived risk. This can be achieved through transparent practices, user protection policies, and accessible customer support. These approaches can boost Ghanaians' confidence and participation in P2P borrowing, thereby improving their financial well-being.