Research Paper
Year: 2021 | Month: January | Volume: 8 | Issue: 1 | Pages: 250-258
The Impact of Fintech Development to Profitability of Islamic Bank
Ardiany Monika1, Achsani Noer Azam2, Saptono Imam Teguh3
1,2,3School of Business, IPB University, Bogor, Indonesia.
Corresponding Author: Ardiany Monika
ABSTRACT
This study aims to look at the determinants that influence the profitability of Islamic commercial banks in term of slowing asset growth, deposits and financing. This study uses ROA as a measure of profitability and independent variables consisting of internal performance, macroeconomic factors and Fintech development by using data accumulation of peer to peer lending transactions. This study uses panel data analysis of 10 Sharia commercial banks in the 2017-2019 period. Based on the results of testing data on state-owned Islamic banks, bank ROA is influenced by BOPO factors, growth rates and Fintech developments, whereas in testing data on private Islamic banks, bank ROA is influenced by FDR, BOPO, Deposit to assets, BI rate and Fintech developments. The development of Fintech has a positive effect on ROA of private Islamic banks and has a negative effect on ROA of state-owned Islamic banks.
Keywords: Fintech development, Internal Indicators, Islamic banks, Macro economics Factors, profitability.
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