Can the Implementation of FinTech Improve Banking Performance? Evidence from Banking Industry in Indonesia

Jeremia Santoso () and Christiana Fara Dharmastuti
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Jeremia Santoso: Atma Jaya Catholic University of Indonesia
Christiana Fara Dharmastuti: Atma Jaya Catholic University of Indonesia

A chapter in Proceedings of the 20th International Symposium on Management (INSYMA 2023), 2024, pp 27-33 from Springer

Abstract: Abstract The growth of FinTech in Indonesia provides an opportunity for the banking industry to continue improving its banking services through digital innovation. This study focuses on analyzing the effect of FinTech implementation on the cost efficiency rate, revenue growth rate, and banking performance. Data were taken from 30 banks audited financial statements which listed on the Indonesia Stock Exchange from the 2019 to 2021 period. The results of this study indicate that ATMs influence banking efficiency and performance. Mobile banking only affects efficiency. Internet banking does not affect any variable. Mobile payments affect efficiency, increase revenue, and banking performance. The cost efficiency rate can mediate ATM and mobile payments only for ROA and directly affects ROA. The revenue growth rate is not able to be a mediating variable.

Keywords: FinTech Implementation; Cost Efficiency Rate; Revenue Growth Rate; Banking Performance (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-244-6_6

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DOI: 10.2991/978-94-6463-244-6_6

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