Digital Economic Model to Encourage National Economic Recovery During Covid-19 Pandemic

DOI

10.2991/aebmr.k.211207.008How to use a DOI?

Keywords

Banking Digitalization; Digital Economy Model; Fintech Industry; National Economy Recovery

Abstract

The impact of the Covid-19 pandemic has occurred in almost all industries, including the banking industry. The uncertain economic conditions since the pandemic have disrupted the economy of a country. In Indonesia, in particular, the government is making efforts to encourage the recovery of the national economy. This National Economic Recovery Program from the Indonesian government aims to protect, maintain and improve the ability of business actors to run their business during the Covid-19 pandemic. The digital economy has become paramount as industries and institutions including, commercial banks, strive to adopt better and more effective methods of providing services to their clients and customers daily. The problem of the slow process of accelerating the development of the digital banking and the issue of collaboration with the FinTech industry in the banking sector are considerations to encourage national economic recovery during the Covid-19 pandemic. The purpose of this digital economic model is to empirically test whether the FinTech industry has a role in mediating and moderating the influence of banking digitalization on national economic recovery through the development of cooperation, especially during the Covid-19 pandemic. This empirical study uses a quantitative method approach. The survey uses an online questionnaire and data collection by purposive random sampling technique. From 200 employee respondents from various banks in Indonesia, finally, 175 samples were taken as valid data and processed using smartPLS software. The results of this study reveal that during the current covid-19 pandemic, the phenomenon of digital economic development can encourage national economic recovery through the development of cooperation in the banking sector with the FinTech industry. They must work together in realizing a digital economy through optimal financial digitalization. The results also reveal that the “FinTech Industry” is not a disruption. But, it has the potential to collaborate with banking sectors through the development of cooperation. The development of this digital economic model expects to make a real contribution in encouraging national economic recovery. The role of the FinTech industry in mediating and moderating the influence of banking digitalization on national economic recovery during the COVID-19 pandemic in this empirical study is a novelty in research related to this digital economy.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Mercurius Broto Legowo
AU  - Fangky Antoneus Sorongan
AU  - Steph Subanidja
PY  - 2021
DA  - 2021/12/07
TI  - Digital Economic Model to Encourage National Economic Recovery During Covid-19 Pandemic
BT  - Proceedings of the Conference Towards ASEAN Chairmanship 2023 (T-A-C 23 2021)
PB  - Atlantis Press
SP  - 55
EP  - 60
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211207.008
DO  - 10.2991/aebmr.k.211207.008
ID  - Legowo2021
ER  -