The impact of internet banking adoption on banking performance during the covid-19 pandemic
Keywords:
Digital Banking, Internet Banking Transactions, Digitalization Investment, Profitability, Financial StabilityAbstract
This study aims to examine the influence digital banking adoption to profitability And financial stability banks in Indonesia, with a focus on the influence internet banking transactions, fee based income, digital assets, And investment in digital assets during COVID-19 pandemic. Although banking digitalization in Indonesia continues to increase, its impact on bank performance still varies. This study uses a quantitative approach quantitative with design panel data regression. The data used is secondary data. The results of the study show that internet banking transaction shave a significant impact on ROA, although the effect is negative, indicating that operational costs are high and initial investment in digital plat form can reduce profitability banks in the short term. Fee based income does not show a significant effect on ROA or Z-Score, which shows that its contribution to profitability and stability bank finances are limited. On the contrary, investment in digital assets have a positive impact on Z-Score, which shows that banks that invest more in digital infrastructure more stable in facing financial risks.
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