Inovasi Perbankan Digital dan Kinerja Perbankan di Indonesia

Abstract

The banks have to improve service quality by implementing digital banking since the financial service industry become more competitive. This research aims to examine the effect of digital banking innovation on bank performance in Indonesia. The total samples are 39 banking firms listed on the Indonesian Stock Exchange period 2016-2019. Bank performance is measured by return on assets and operational cost-to-income ratio. Digital banking innovation is measured by the digital innovation award publication. Based on a fixed-effect regression analysis, digital banking innovation has a positive effect on bank profitability and efficiency. It indicates that digital banking innovation provides better service quality by maintaining customer trust, loyalty, and satisfaction to generate higher revenue. Digital banking innovation also provides cost reduction, especially human resource and office costs. This research implies that bank management for implementing innovative digital banking services so that bank performance can be improved. This research only examines digital banking based on the winners of the digital innovation award. Future research is expected to examine digital banking by measuring the digital banking implementation performance from all stakeholder points of view such as management, customer, regulator, or external technology provider to get a comprehensive evaluation of digital banking implementation.