IMPACT OF MOBILE BANKING USAGE INTENSITY ON IDX-LISTED BANKS' PERFORMANCE: ANALYSIS OF PRE- AND DURING-POST COVID-19 PERIODS

• Main Author: Yoga Ade Juanda, Kadek
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83285
• Institution: Institut Teknologi Bandung

This study examines the impact of mobile banking usage intensity on the performance of banks listed on the Indonesia Stock Exchange (IDX), measured by Return on Assets (ROA) and Return on Equity (ROE). The analysis covers two periods: pre-COVID-19 (2013-2019) and during/after COVID-19 (2020-2023). Data from 14 banks were analysed using the Pooled Ordinary Least Squares (OLS) method. The findings indicate that mobile banking usage positively impacts bank performance in both periods. Before the pandemic, increased mobile banking transactions significantly improved profitability and equity returns, indicating enhanced efficiency in generating earnings from assets and a positive effect on generating returns on shareholders' equity. This positive impact became more pronounced during and after the pandemic, reflecting heightened reliance on digital banking channels. Furthermore, the COVID-19 pandemic significantly changed people's behaviour toward greater adoption of digital solutions. The study also reveals significant differences between small and large banks. For small banks, mobile banking usage did not significantly affect performance metrics, suggesting barriers to effectively leveraging digital banking. In contrast, large banks saw significant improvements in ROA and ROE due to mobile banking usage, benefiting from substantial resources and advanced technological infrastructure. This research underscores the critical role of digital transformation in enhancing bank performance, especially during crises. The findings suggest that continued investment in mobile banking technologies is essential for maintaining and improving financial performance.