International Journal of Social Service and Research
Vol. 3 No. 2 (2023): International Journal of Social Service and Research (IJSSR)

Digitalization of Banking and Financial Performance of Banking Companies

Isma Coryanata (Faculty of Economics and Business, Universitas Bengkulu, Indonesia)
Elisa Hawalia Ramli (Faculty of Economics and Business, Universitas Bengkulu, Indonesia)
Lisa Martiah Nila Puspita (Faculty of Economics and Business, Universitas Bengkulu, Indonesia)
Halimatusyadiah Halimatusyadiah (Faculty of Economics and Business, Universitas Bengkulu, Indonesia)

Article Info

Publish Date
11 Feb 2023

Abstract

This study aims to identify the impact of bank digitization on the financial performance of companies in the Indonesian banking sector. The study uses his three-year (2018-2020) panel data of banking companies listed on the Indonesia Stock Exchange, covering 40 banks and 120 observations. Data were analyzed using panel data regression with a fixed effects model. The analysis tool used in this study is Eviews version 10. The results of this study show that the application of banking digitalization in the form of digital technology adaptation in banking firms has a negative impact on financial performance as measured by return on investment. These results highlight that the use of digital technology failed to improve the financial performance of Indonesian banks. As factual information, the study serves as the basis for decisions regarding the application of digital technology in banking companies. Investors are especially careful when investing in companies that use digital technology.

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Journal Info
International Journal of Social Service and Research
Website

Abbrev

ijssr

Publisher

Ridwan Institute

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Environmental Science Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Social Sciences

Description

International Journal of Social Service and Research is a double-blind, peer-reviewed academic journal with open access to social and scientific fields. The journal is published monthly by Ridwan Institute. International Journal of Social Service and Research provides a means for sustained ...