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The Impact of internet banking & mobile banking services on profitability : analysis of 32 listed Indonesian banks on the Indonesian Stock Exchange (IDX) from 2005-2018

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Technological advances may have become one of the greatest disruptive elements in the financial service industry. Banks in Indonesia have started implementing internet banking and mobile banking services to adapt with the digital advances. Thus, this research examines whether the implementation of internet banking and mobile banking services have impacted the profitability of banks in Indonesia. Using financial data from the period between 2015 to 2018 of 32 listed Indonesian banks in IDX; the impact significance of these services is estimated using panel data method. This research finds that internet banking service has a negative significant impact towards ROA and ROE, while mobile banking service has a negative significant impact towards ROE only. In other words, internet banking service has lowered ROA and ROE, upon adoption. There is a possibility that high growth of total assets and total equities are not balanced by the growth of the return from this service. Furthermore, the adoption of mobile banking service has no significant impact to the ROA but has lowered the ROE upon adoption. It may be an indication that the number of mobile banking users is not much, but the shareholders are optimist that this service may produce great return in the future.

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Availability

B03045

(Rack Thesis)

Available

Detail Information

Series Title

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Call Number

3045

Publisher

: Swiss German University., 2019

Collation

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Language

English

ISBN/ISSN

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Classification

NONE

Content Type

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Media Type

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Carrier Type

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Edition

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Subject(s)

Indonesia
FIN
Banking
Mobile banking
ROA
ROE
Internet Banking
Digital Banking
Financial Profitability

Specific Detail Info

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Statement of Responsibility

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