An Analysis on the Effect of E-Banking on Bank Performance in Indonesia

摘要

This research aims to analyze the impact of e-banking on Indonesian bank performance. E-banking indicators used in this research consist of internet banking, mobile banking, and ATM. Bank performance is measured by ROA, ROE, and NIM. Three control variables, namely bank size, efficiency, and CAR, are also included in the study. The research sample consists of 36 banks listed in IDX, with a five-year observation period (from 2015-2019). This research employs multiple regression analysis. The findings suggest that internet banking has a positive significant effect on bank performance, while ATM is positive but not significant when control variables are considered. Contrary to prediction, mobile banking’s impact on bank performance is negative, with non-significant to weak significant impact. In Indonesia, it appears that bank performance is still dominated by more traditional measures, such as bank size and CAR, rather than e-banking. Nevertheless, given the technological advancement nowadays, it is possible to see the greater effect of e-banking on Indonesian bank performance in the future.