Research Article
Fintech Development and Banking Performance in Indonesia
@INPROCEEDINGS{10.4108/eai.10-8-2022.2320831, author={Dimas Bagus Wiranatakusuma and Daffa Zain Ar Rifqi Jami}, title={Fintech Development and Banking Performance in Indonesia}, proceedings={Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2022}, month={8}, keywords={error correction model (ecm) banking performance fintech indonesia}, doi={10.4108/eai.10-8-2022.2320831} }- Dimas Bagus Wiranatakusuma
Daffa Zain Ar Rifqi Jami
Year: 2022
Fintech Development and Banking Performance in Indonesia
ICBAE
EAI
DOI: 10.4108/eai.10-8-2022.2320831
Abstract
A bank is a financial entity whose business activities consist of collecting monies from the public, redistributing them to the community, and offering additional services. The objective of this study is to determine how the development of Fintech in Indonesia may impact the performance of Indonesian banks. This study seeks to determine the number of lenders (JL), borrowers (JB), and loans (J) in the United States (JP). Secondary data from Bank Indonesia and the Financial Services Authority were used for this investigation. The sample used is the statistics report on Fintech Lending from July 2018 to September 2021. The employed method of analysis is the Vector Error Correction Model (VECM) method. The data indicate that there is no statistical correlation between fintech institutions and the short-term development of banks. On the other hand, the performance of banks is disturbed in the long run by the large number of loans disbursed by fintech organizations. Due to market segmentation based on customer level and background, banks' performance is not significantly impacted by the large number of lenders and borrowers inside fintech organizations.