Article Sidebar

Submitted
September 5, 2022
Accepted
October 20, 2022
Published
December 19, 2022
Download
Full text PDF
Statistic
Read Counter : 2177 Download : 2885

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose – This study aims to examine the impact of fintech, liquidity, and bank size on financial performance in Indonesia's conventional commercial banks registered with the Financial Services Authority.


Design/methodology/approach – This study's population consists of Conventional Commercial Banks registered with OJK from 2012 to 2021. The research sample comprises conventional commercial banks using fintech between 2012 and 2021. Purposive sampling was used as a sampling technique. The data from 20 banks with 200 financial statement data show the hypothesis testing using SmartPLS software (PLS-SEM method).


Findings– The findings of this study show that fintech has a positive effect on financial performance, bank size is a moderating variable for the repercussions of fintech on financial performance, liquidity also has a positive impact on financial performance, and bank size is a moderating variable for the effectiveness of liquidity on financial performance.


Research limitations/implications- The theoretical implication of this research is that a large bank size follows a large liquidity ratio and that the bank's financial performance will tend to be large because the bank can cover its debts easily, which will have an impact on increasing the bank's profit. The greater the growth of Fintech, the better the bank's financial performance. This demonstrates that fintech benefits banks. Banks can increase their profits by implementing fintech. The implications of signaling theory for the effect of bank size on the influence of fintech and liquidity on financial performance. This is due to the public's perception that the information developed by Conventional Commercial Banks and published on the official website is reliable. As a result, people are interested in saving money in conventional commercial banks to improve the bank's financial performance.


Practical implications– Provide information and input to investors as a basis for making investment decisions related to variables that affect financial performance, especially in Conventional Commercial Banks.


Originality/value – This study fills the gap from previous research that is still inconclusive on the factors that affect financial performance. The novelty in this study is that bank size is used as a moderating variable to analyze whether bank size strengthens or weakens the relationship between financial technology, liquidity, and financial performance at Conventional Commercial Banks.

Keywords

fintech, liquidity, economic performance, bank size

Article Details

License

Copyright (c) 2023 Sri Hermuningsih, Pristin Prima Sari, Anisya Dewi Rahmawati

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Hermuningsih, S., Sari, P. P. ., & Rahmawati, A. D. . (2022). The moderating role of bank size: influence of fintech, liquidity on financial performance. Jurnal Siasat Bisnis, 27(1), 106–117. https://doi.org/10.20885/jsb.vol27.iss1.art8
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Achmady, M., Andriana, I., & Thamrin, K. M. H. (2021). The Analysis of Liquidity and Its Effect on Profitability, Sales and Working Capital Policy in Manufacturing Companies Listed on Indonesia Stock Exchange. Jurnal Manajemen Dan Bisnis Sriwijaya, 18(4), 243–254.
  2. Akenga, G. (2017). Effect of Liquidity on Financial Performance of Firms Listed at the Nairobi Securities Exchange, Kenya. International Journal of Science and Research (IJSR), 6(7), 279–285.
  3. Al-Qadi, N. S., & Khanji, I. (2018). The Relationship Between Liquidity and Profitability - An Empirical Study on the ISE100 Manufacturing Sector. Journal of Süleyman Demirel University Institute of Social Sciences, 2(16), 167–176.
  4. Almulla, D., & Aljughaiman, A. A. (2021). Does financial technology matter? Evidence from an alternative banking system. Cogent Economics and Finance, 9(1), 1934978.
  5. Bach Phan, D. H., Kumar Narayan, A., Rahman, R. E., & R.Hutabarat, A. (2020). Do financial technology firms influence bank performance?. Pacific-Basin Finance Journal, 62, 101210.
  6. Bashayreh, A., & Wadi, R. M. A. (2020, November). The Effect of Fintech on Banks’ Performance: Jordan Case. In International Conference on Business and Technology (pp. 812-821). Springer, Cham.
  7. Bouri, E., Lucey, B., & Roubaud, D. (2020). The volatility surprise of leading cryptocurrencies: Transitory and permanent linkages. Finance Research Letters, 33, 101188.
  8. Brigham, E. F. J., & Houston. (2014). Fundamentals of Financial Management (14th ed.).
  9. Chhaidar, A., Abdelhedi, M., & Abdelkafi, I. (2022). The Effect of Financial Technology Investment Level on European Banks’ Profitability. Journal of the Knowledge Economy, 1-23.
  10. Daniyan-bagudu, H., Jan, S., Khan, M., & Roslan, A. (2017). The Effect of Mobile Banking on the Performance of Commercial Banks in Nigeria. International Research Journal of Management, IT & Social Sciences, 4(2), 74–80.
  11. Demirgünes, K. (2016). The Effect of Liquidity on Financial Performance: Evidence from Turkish Retail Industry. International Journal of Economics and Finance, 8(4), 63-79.
  12. Fahmi, I. (2017). Analisis Kinerja Keuangan, Panduan bagi Akademisi, Manajer, dan Investor untuk Menilai dan Menganalisis Bisnis dari Aspek Keuangan. Beta (ed.).
  13. Febryanti, S., Fadilah, S., & Nurcholisah, K. (2021). Analisis Kinerja Keuangan dan Biaya Operasional pada Perusahaan Financial Technology. Jurnal Riset Akuntansi, 1(1), 15–23.
  14. Goswami, S., Sharma, R. B., & Chouhan, V. (2022). Impact of Financial Technology (Fintech) on Financial Inclusion(FI) in Rural India. Universal Journal of Accounting and Finance, 10(2), 483–497.
  15. Gunawan, H., & Serlyna, S. (2018). Impact of Information Technology Investment To Financial Performance on Banking Sector. Journal of Applied Managerial Accounting, 2(1), 41–46.
  16. Hacini, I., Boulenfad, A., & Dahou, K. (2021). The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks. EMAJ: Emerging Markets Journal, 11(1), 67–75.
  17. Haddad, C., & Hornuf, L. (2019). The emergence of the global fintech market: economic and technological determinants. Small Business Economics, 53(1), 81–105.
  18. Hiyanti, H., Nugroho, L., Sukmadilaga, C., & Fitrijanti, T. (2020). Peluang dan Tantangan Fintech (Financial Technology) Syariah di Indonesia. Jurnal Ilmiah Ekonomi Islam, 5(3), 326–333.
  19. Iskandar, M., & Zulhilmi, M. (2021). Pengaruh Likuiditas dan Ukuran Perusahaan Terhadap Kinerja Keuangan Bank Umum Syariah di Indonesia. Journal of Sharia Economics, 2(1), 59–78.
  20. Isnaini, S. W. (2021). Pengaruh Car, Nom Dan Pembiayaan Murabahah Terhadap Kinerja Keuangan Bank Umum Syariah Dengan Ukuran Perusahaan Sebagai Variabel Moderating. Jurnal Masharif Al-Syariah: Jurnal Ekonomi Dan Perbankan Syariah, 7(1).
  21. Jaworski, J., & Czerwonka, L. (2021). Meta-study on the relationship between profitability and liquidity of enterprises in macroeconomic and institutional environment. Decision, 48(2), 233–246.
  22. Karsha, S. A., & Abufara, Y. (2020). The New Era Of Financial Technology In Banking Industry. Journal Of Southwest Jiaotong University, 55(4), 1-12.
  23. Kasmir. (2019). Analisis Laporan Keuangan. PT. Raja Grafindo Persada.
  24. Li, Y., Spigt, R., & Swinkels, L. (2017). The impact of FinTech start-ups on incumbent retail banks’ share prices. Financial Innovation, 3(1), 1-16.
  25. Lucy, O. U., Nnenna, C. V., & Nnenna, O. V. (2018). Effect of electronic banking on financial performance of deposit money banks in Nigeria. Journal Of Economics and Sustainable Development, 16(3), 71–83.
  26. Lv. S , Du. Y., and Liu, Y. (2022). How Do Fintechs Impact Banks’ Profitability? An Empirical Study Based on Banks in China. FinTech. 1, 155–163
  27. Malik, M. S., Awais, M., & Khursheed, A. (2016). Impact of Liquidity on Profitability: A Comprehensive Case of Pakistan’s Private Banking Sector. International Journal of Economics and Finance, 8(3), 69-74.
  28. Mateka, M., Gogo, D. J., & Omagwa, J. (2017). Effects of Internet Banking on Financial Performance of Listed Commercial Banks in Kenya. American Journal of Finance, 1(1), 53-71.
  29. Mietzner, M., & Molterer, M. (2018). You might not get what you need: The discrepancy between financial advice and commissions in Germany. Economics Letters, 162, 167–170.
  30. Munawir. (2014). Analisa Laporan Keuangan (Liberty).
  31. Musabegovic, I., Ozer, M., Dukovic, S., & Jovanović, S. (2019). Influence of financial technology (fintech) on financial industry. Economics of Agriculture, 66(4), 1003–1021.
  32. Musyrifah. (2020). The Liquidity And Activity Effect On Profitability Of Pulp And Paper Sub-Sector Manufacturing Companies In Indonesia. Humanities, Management and Science Proceedings, 1(1), 371–377.
  33. Painoli. G.K. Dhinakaran. D.P, and Vijai. C. (2021). Impact of Fintech on the Profitability of Public and Private Banks in India. Annals of R.S.C.B. 2(6), 5419-5431
  34. Paul, S. C., Bhowmik, P. K., & Famanna, M. N. (2021). Impact of Liquidity on Profitability: A Study on the Commercial Banks in Bangladesh. Advances in Management and Applied Economics, 11(1), 73–90.
  35. Pollari, I. (2016). The rise of Fintech opportunities and challenges. JASSA: The Journal of the Securities Institute of Australia, 3, 15–21.
  36. Rahadjeng, E. R., Sudarmiatin, & Hermawan, A. (2021). the Influence of Financial Technology on the Financial Performance of Msmes in Malang. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4), 1346–1356.
  37. Rega, F. G. (2017). The Bank of the Future, the Future of Banking - An Empirical Analysis of European Banks. SSRN Electronic Journal. 3071742.
  38. Rudhani, L. H., and Balaj, D. (2019). The effect of liquidity risk on financial performance. Advances in Business Related Scientific Research Journal, 10(2), 20–31.
  39. Saksonova, S., and Kuzmina-Merlino, I. (2017). Fintech as financial innovation - The possibilities and problems of implementation. European Research Studies Journal, 20(3), 961–973.
  40. Siska, E. (2022). Financial Technology (FinTech) and Its Impact on Financial Performance of Islamic Banking. ARBITRASE: Journal of Economics and Accounting, 2(3), 102–108.
  41. Stewart, H., & Jürjens, J. (2018). Data security and consumer trust in FinTech innovation in Germany. Information and Computer Security, 26(1), 109-128.
  42. Sudaryanti, D. S., Sahroni, N., & Kurniawati, A. (2018). Analisa Pengaruh Mobile Banking Terhadap Kinerja Perusahaan Sektor Perbankan Yang Tercatat Di Bursa Efek Indonesia. Jurnal Ekonomi Manajemen, 4(November), 96–107.
  43. Tunay, K. B., Tunay, N., & Akhisar, I. (2015). Interaction Between Internet Banking and Bank Performance : The Case of Interaction Between Internet Banking and Bank Performance : The Case of Europe. Procedia - Social and Behavioral Science, 195, 363–368.
  44. Utami, N., & Sitanggang, M. L. (2021). The Effect of Fintech Implementation on The Performance of SMEs. Journal of International Conference Proceedings (JICP), 4(3), 407–417.
  45. Wang, Y., Xiuping, S., & Zhang, Q. (2021). Can fintech improve the efficiency of commercial banks? —An analysis based on big data. Research in international business and finance, 55, 101338.
  46. Waswa, C. W., Mukras, M. S., & Oima, D. (2018). Effect of Liquidity on Financial Performance of the Sugar Industry in Kenya. International Journal of Education and Research, 6(6), 29–44.
  47. Yadi, L. I. U., Yuning, S., Jiayue, Y. U., Yingfa, X. I. E., Yiyuan, W., & Xiaoping, Z. (2019). Big-data-driven Model Construction and Empirical Analysis of SMEs Credit Assessment in China. Procedia Computer Science, 147, 613–619.