Open AccessFinancial Technology as Determinants of Bank Profitability
Author(s) -
Henny Medyawati,
Muhamad Yunanto,
Ega Hegarini
Publication year - 2021
Publication title -
journal of economics, finance and accounting studies
Language(s) - English
Resource type - Journals
ISSN - 2709-0809
DOI - 10.32996/jefas.2021.3.2.10
Subject(s) - profitability index , stock exchange , nonprobability sampling , business , return on assets , the internet , panel data , variables , financial system , finance , econometrics , computer science , economics , mathematics , statistics , operating system , population , demography , sociology
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.