Analysis Of The Influence Of Credit Financial Technology On Banks' Financial Performance In Indonesia

Hesrin; Abdul Moin

doi:10.63922/ijebir.v4i04.2069

Hesrin Management Study Program, Faculty of Business and Economics, Islamic University of Indonesia
Abdul Moin Management Study Program, Faculty of Business and Economics, Islamic University of Indonesia

DOI: https://doi.org/10.63922/ijebir.v4i04.2069

Keywords: Fintech Credit, ROA, NIM, NPL, BOPO, Bank

Abstract

This study aims to analyze the influence of credit financial technology (fintech) on the financial performance of banks in Indonesia. This study uses the Return on Assets (ROA) and Net Interest Margin (NIM) indicators to measure the financial performance of banks. The independent variables used were fintech collaboration dummy, Non-Performing Loan (NPL), and Operating Costs to Operating Income (BOPO). Data was obtained from the annual reports of 12 banks registered with the OJK for the 2019-2023 period. The analysis method used was multiple linear regression with the help of SPSS version 29. The results of the study show that Fintech Loans have a significant positive effect on ROA and NIM, BOPO has a significant negative effect on ROA and NIM, while NPL does not have a significant effect on ROA, but has a significant positive effect on NIM. These results confirm the importance of banking collaboration with fintech and operational efficiency in increasing banking profitability.

Keywords: Fintech Credit, ROA, NIM, NPL, BOPO, Bank

References

Albertazzi, U., & Gambacorta, L. (2009). Bank profitability and the business cycle. Journal of Financial Stability, 5(4), 393-409.
Boot, A. W., & Ratnovski, L. (2016). Banking and trading. Review of Finance, 20(6), 2219-2246.
Dendawijaya, L. (2009). Banking Management. Jakarta: Ghalia Indonesia.
Dietrich, A., & Wanzenried, G. (2011). Determinants of bank profitability before and during the crisis: Evidence from Switzerland. Journal of International Financial Markets, Institutions and Money, 21(3), 307-327.
Flamini, V., McDonald, C., & Schumacher, L. (2009). The determinants of commercial bank profitability in Sub-Saharan Africa. IMF Working Paper, 09/15.
Ghozali, I. (2018). Multivariate Analysis Application with IBM SPSS 25 Program. Semarang: Publishing Agency of Diponegoro University.
Louzis, D. P., Vouldis, A. T., & Metaxas, V. L. (2012). Macroeconomic and bank-specific determinants of non-performing loans in Greece: A comparative study of mortgage, business and consumer loan portfolios. Journal of Banking & Finance, 36(4), 1012-1027.
Makri, V., Tsagkanos, A., & Bellas, A. (2014). Determinants of non-performing loans: The case of Eurozone. Panoeconomicus, 61(2), 193-206.
Mishkin, F. S. (2015). The Economics of Money, Banking and Financial Markets (11th ed.). Boston: Pearson.
Financial Services Authority. (2023). Statistics of Fintech Lending Indonesia. Jakarta: OJK.
Philippon, T. (2016). The fintech opportunity. NBER Working Paper, 22476.
Thakor, A. V. (2020). Fintech and banking: What do we know? Journal of Financial Intermediation, 41, 100833.
Vives, X. (2019). Digital disruption in banking. Annual Review of Financial Economics, 11, 243-272.