Research Article

Financial Technology as Determinants of Bank Profitability

Authors

  • Henny Medyawati Associate Professor, Faculty of Economics, Gunadarma University, West Java, Indonesia
  • Muhamad Yunanto Associate Professor, Faculty of Economics, Gunadarma University, West Java, Indonesia https://orcid.org/0000-0003-0606-3806
  • Ega Hegarini Lecturer, Faculty of Computer Science and Information Technology, Gunadarma University, West Java Indonesia

Abstract

This study analyzes the influence of financial technology on the financial performance of banks listed on the Indonesia Stock Exchange (IDX) during the 2014-2020 period. Financial technology was measured by the number of Automated Teller Machine (ATM) transactions and internet and mobile banking, while bank profitability was measured by Return On Assets (ROA). Furthermore, this study used the panel data regression analysis, with the Automated Teller Machine (ATM) transactions as well as internet and mobile banking as the independent variables, and ROA as the dependent variable. Purposive sampling was used to select six banks as samples. The results showed the fixed effect as the most suitable model, where ROA is affected by the internet and mobile banking, while the TM technology has no effect.

Article information

Journal

Journal of Economics, Finance and Accounting Studies

Volume (Issue)

3 (2)

Pages

91-100

Published

2021-10-14

How to Cite

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. https://doi.org/10.32996/jefas.2021.3.2.10

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Keywords:

ATM, FinTech, Internet banking, Mobile banking, Return On Asset (ROA)