Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024)

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Application of Financial Technology on the Performance of Banks

Authors
Fajra Octrina1, Jihan Eliza1, *, Andrieta Shintia Dewi1, Almi Jamilah1
1School of Economics and Business, Telkom University, Bandung, Indonesia
*Corresponding author. Email: jihaneliza21@gmail.com
Corresponding Author
Jihan Eliza
Available Online 19 November 2024.
DOI
10.2991/978-94-6463-558-4_14How to use a DOI?
Keywords
Banking; Digital Payment; Financial Technology; Peer-to-Peer Lending; Performance
Abstract

This study investigates the influence of financial technology (FinTech) on the performance of banks, specifically examining Peer-to-Peer Lending (P2P) and Digital Payments (PAY) in relation to Return on Equity (ROE). FinTech innovations are rapidly transforming financial services. Although previous research has explored FinTech’s impact on financial performance, comprehensive analyses focusing on Indonesian commercial banks are lacking. This paper examines how P2P Lending and Digital Payments influence the ROE of these banks. This study analyzes secondary data from Indonesian commercial banks’ annual and financial reports (KBMI 3 and 4) from 2018 to 2022. Panel data regression models are employed for analysis. The results find that FinTech, along with control variables such as Concentration Ratio, Firm Size, Loan-to-Deposit Ratio, Capital Adequacy Ratio, Inflation, and Gross Domestic Product, impacts banking performance. Both P2P Lending and Digital Payments show a positive correlation with ROE. FinTech innovations are essential for enhancing the performance of commercial banks. These findings underscore the importance of integrating FinTech into banking strategies for sustainable growth and competitive advantage.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
19 November 2024
ISBN
978-94-6463-558-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-558-4_14How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Fajra Octrina
AU  - Jihan Eliza
AU  - Andrieta Shintia Dewi
AU  - Almi Jamilah
PY  - 2024
DA  - 2024/11/19
TI  - Application of Financial Technology on the Performance of Banks
BT  - Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024)
PB  - Atlantis Press
SP  - 239
EP  - 256
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-558-4_14
DO  - 10.2991/978-94-6463-558-4_14
ID  - Octrina2024
ER  -