Determining Factors of Bank Profitability in Indonesia and Malaysia
1Citra Laras, 2Henny Medyawati
1Student, Faculty of Economics, Gunadarma University, West Java, Indonesia
2Lecturer, Faculty of Economics, Gunadarma University, West Java, Indonesia
https://doi.org/10.47191/jefms/v7-i5-48ABSTRACT:
This stutdy analyzes the influence of financial technology on profitability in banks Indonesia and Malaysia for the 2017-2022. The influence of financial technology in this research is measured by the frequency of ATM, internet banking, mobile banking and E-Money transactions as independent variables, while bank profitability is measured by return on assets as the dependent variable. The type of data used is quantitative data. The data source used in this research is secondary data in the form of financial reports published on the banking company’s official website. Purposive sampling was used to select five banks in Indonesia as samples. The analysis technique in this research uses Smart PLS 3.0 by analysing the inner model such as the coefficient of determination and hypothesis testing. The research result show that partially, ATM transactions have no effect on ROA in banks Indonesia and Malaysia, internet banking transactions have a positive effect on ROA in banks Indonesia but have no effect on banks in Malaysia, mobile banking transactions have a negative effect on ROA in banks Indonesia and Malaysia, E- Money transactions have no effect on ROA in banks Indonesia but have a significant positive effect on banks in Malaysia. Simultaneously, ATM transactions, internet banking, mobile banking and E-Money influence ROA in banking Indonesia and Malaysia
KEYWORDS:
FinTech, ATM, Internet banking, Mobile Banking, E-Money, Return On Asset
REFERENCES:
1) Almurni, S., Fatin, A.S., & Mustika, M. (2023). Pengaruh electronic banking dan electronic money terhadap kinerja keuangan perbankan yang terdaftar di Bursa Efek Indonesia. Akuntansi Dan Manajemen, 32(1), 30–45. doi.org/10.36406/jam.v18i02.1323
2) Amali, L. M., & Selvi, S. (2021). Pengaruh e-banking terhadap kinerja keuangan perbankan yang terdaftar di Bursa Efek Indonesia. Jurnal Manajemen & Organisasi Review (Manor), 3(1), 36–47. doi.org/10.47354/mjo.v3i1.284
3) Anugrah, T. (2021). Pengaruh financial technology terhadap kinerja keuangan pada perbankan yang listing di Bursa Efek Indonesia. Skripsi. Universitas Gunadarma.
4) Ayuningtyas, M., & Sufina, L. (2023). Pengaruh penggunaan mobile banking, internet banking, dan ATM terhadap kinerja keuangan perbankan (studi kasus sektor bank konvensional yang terdaftar di Bursa Efek Indonesia) Tahun 2017- 2021. Jurnal Keuangan Dan Perbankan, 19(2), 119–130. doi.org/10.35384/jkp.v19i2.394
5) Aziz, A., Lestari, D. M., & Furwanti, R. (2020). Sinergitas perbankan dan financial technology: Ikhtiar menuju inklusifitas keuangan masyarakat unbankable. Jurnal Dinamika Ekonomi & Bisnis, 17(1), 37–47. doi.org/10.34001/jdeb.v17i1.1058
6) Bank Indonesia. (2017). Laporan perekonomian Indonesia. Jakarta: Bank Indonesia. Retrieved from: https://www.bi.go.id/id/publikasi/laporan/Documents/11_LPI2017_BAB9.pdf
7) Bank Indonesia. (2021). Laporan perekonomian Indonesia. Jakarta: Bank Indonesia. Retrieved from: https://www.bi.go.id/id/publikasi/laporan/Documents/8_LPI2021_BAB6.pdf
8) Bank Indonesia. (2022). Laporan perekonomian Indonesia. Jakarta: Bank Indonesia. Retrieved from: https://www.bi.go.id/id/publikasi/laporan/Documents/8_LPI2022_BAB7.pdf
9) Bank Indonesia, T. P. P. P. (2003). Internet banking di Indonesia. Buletin Ekonomi Moneter Dan Perbankan, 5(1), 37–64. doi.org/10.21098/bemp.v5i1.304
10) Booz, A., & Hamilton. (1997). Internet banking: A global study of potential. Booz, Allen & Hamilton Inc., New York, NY.
11) Chhaidar, A., Abdelhedi, M., & Abdelkafi, I. (2022). The effect of financial technology investment level on European banks’ profitability. Journal of the Knowledge Economy, 0123456789. doi.org/10.1007/s13132-022-00992-1
12) Commons, J. R. (1931). Institutional economic theory. American Economic Review, 21, 648–657.
13) Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35(8), 982–1003. doi.org/10.1287/mnsc.35.8.982
14) Fuadi, A. M., & Munawar. (2022). Analisis pengaruh fintech adoption terhadap profitabilitas bank umum konvensional di Indonesia. Contemporary Studies in Economic, Finance and Banking, 1(1), 13–24.
15) Hsueh, S. C., & Kuo, C. H. (2017). Effective matching for P2P lending by mining strong association rules. ACM International Conference Proceeding Series, Part F1309, 30–33. doi.org/10.1145/3133811.3133823
16) Hsueh, S. C., & Kuo, C. H. (2017). Effective matching for P2P lending by mining strong association rules. ACM International Conference Proceeding Series, Part F1309, 30–33. doi.org/10.1145/3133811.3133823
17) Jepchumba, P., & Simiyu, D. E. (2019). Electronic banking adoption and financial performance of commercial banks in Kenya, Nairobi city county. International Journal of Finance and Accounting, 4(2), 19–38. doi.org/10.47604/ijfa.985
18) Karsh, S. A., & Abufara, Y. (2020). The new era og financial technology in banking industry. Journal of Southwest Jiaotong University, 55(4), 1–13. doi.org/10.35741/issn.0258-2724.55.4.54
19) Liu, C., & Arnett, K. P. (2000). Exploring the factors associated with website success in the context of electronic commerce.Journal of Information and Management, 1, 23–33.
20) Mary Ogutu, & Fatoki Olanrewaju Isola. (2019). Effect of e-banking on financial performance of listed commercial banks in Kenya. Global Scientific Journals, January 2019.
21) Medyawati, H., Yunanto, M., & Hegarini, E. (2021). Financial technology as determinants of bank profitability. Journal of Economics, Finance and Accounting Studies, 3(2), 91–100. doi.org/10.32996/jefas.2021.3.2.10
22) Mills, C. W. (1959). The sociological imagination. In The Sociological Imagination. Oxford University Press. books.google.co.id/
23) Mohamed Abdullai, H. (2018). Effect of internet banking on operational performance of commercial banks in Nakuru county, Kenya. International Journal of Economics, Finance and Management Sciences, 6(2), 60. doi.org/10.11648/j.ijefm.20180602.14
24) Mutisya, M. M., & Atheru, G. (2019). Electronic banking and financial performance of commercial banks in Kenya.International Journal of Current Aspects, 3(II), 293–304. doi.org/10.35942/ijcab.v3iii.24
25) Njoroge, M. N., & Mugambi, F. (2018). Effect of electronic banking on financial performance in Kenyan commercial banks: Case of equity bank in its Nairobi central business district branches, Kenya. International Academic Journal of Economics and Finance, 3(2), 197–215
26) Otoritas Jasa Keuangan. (2015). Bijak ber-ebanking. Jakarta: Otoritas Jasa Keuangan. Retrieved from: https://www.ojk.go.id/Files/box/buku%20bijak%20ber-ebanking.pdf
27) Omoruyi, A., & Orobator, B. (2022). Electronic banking and financial performance of deposit money banks in Nigeria. Journal of Economics and Development Studies, July. researchgate.net/publication/358890223
28) Peraturan Bank Indonesia. (2017). Peraturan bank Indonesia No. 19/12/PBI/2017 tentang penyelenggaraan teknologi finansial. Jakarta: Peraturan Bank Indonesia. Retrieved from: https://www.bi.go.id/id/publikasi/peraturan/Pages/PBI_191217.aspx
29) Statista. (2024). Statistics and market data on Malaysia. Statitsta. Retrieved from: https://www.statista.com/study/48369/malaysia/
30) Sudaryanti, D. S., Sahroni, N., & Kurniawati, A. (2019). Analisa pengaruh mobile banking terhadap kinerja perusahaan sektor perbankan yang tercatat di Bursa Efek Indonesia. Jurnal Ekonomi Manajemen, 4(2), 96–107. doi.org/10.37058/jem.v4i2.699
31) Thio, J. C., & Yusniar, M. W. (2021). Pengaruh mobile banking terhadap kinerja keuangan perbankan Indonesia. Jurnal Ilmiah Manajemen , Vol XII No(3), 1–12.
32) Venkatesh, V., & Davis, F. D. (2000). Theoretical extension of the technology acceptance model: Four longitudinal field studies. Management Science, 46(2), 186–204. doi.org/10.1287/mnsc.46.2.186.11926
33) Wijayanti, R. P., Salma, U., Azizah, A., Daulay, Y., & Nugroho, A. W. (2021). Ijeba the effect of digital banking innovation on the perfromance of conventional commercial banks in Indonesia. 2(2), 2021. ijeba.makarioz.org/
34) Yohani, SE, M.Si, Ak, C., & Dita, S. F. I. (2018). Pengaruh internet banking terhadap kinerja keuangan pada bank umum konvensional yang terdaftar di Bursa Efek Indonesia (Periode 2015 –2018). Foreign Affairs, 91(5). doi.org/10.1017/CBO9781107415324.004
