FINTECH, BANKS, AND THE COVID-19 PANDEMIC: EVIDENCE FROM INDONESIA

Militcyano Samuel Sapulette (), Nury Effendi () and Teguh Santoso ()
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Militcyano Samuel Sapulette: Universitas Padjajaran
Nury Effendi: Universitas Padjajaran
Teguh Santoso: Universitas Padjajaran

Bulletin of Monetary Economics and Banking, 2021, vol. 24, issue 4, 559-588

Abstract: This study investigates the relationship between fintech and banks and how this relationship is affected by the COVID-19 pandemic. We use monthly stock data of all banks consistently listed on the Indonesian Stock Exchange from February 2018 to March 2021. For fintech data, we use a total of four proxies that encompass both lending and borrowing aspects of peer-to-peer lending fintech. To provide robust results, we use five model specifications. Furthermore, we also estimate models using both the fixed effect and the two-step system generalized method of moments estimators. Our estimates indicate a relatively less negative impact of fintech on bigger banks. This relationship is further exemplified during the COVID-19 pandemic period. We argue that these findings have significant implications for the Indonesian financial authorities’ open banking strategy and for the future of the Indonesian financial system in general.

Keywords: Fintech; Banks; COVID-19 Pandemic; Stoc returns; Indonesia (search for similar items in EconPapers)
JEL-codes: G10 G21 G23 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:24:y:2021:i:4d:p:559-588

DOI: 10.21098/bemp.v24i4.1470

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