Proceedings of the International Colloquium on Business and Economics (ICBE 2022)

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The Effect of Fintech on Conventional Bank Performance and Bank Risk

Authors
Harmadi1, *, Wisnu Untoro1, Irwan Trinugroho1, Atmaji1
1Faculty of Economics and Business, Universitas Sebelas Maret, Jl. Ir. Sutami 36A, Surakarta, 57126, Indonesia
*Corresponding author. Email: harmadiharsowardoyo@yahoo.co.id
Corresponding Author
Harmadi
Available Online 26 December 2022.
DOI
10.2991/978-94-6463-066-4_13How to use a DOI?
Keywords
Fintech; Bank Performance; Bank Risk; dan Bank Ownership Structure
Abstract

Fintech in Indonesia is growing very rapidly, this is also very interesting for researchers. This study looks at the effect of Fintech on the performance and risk of conventional banks in Indonesia. The proxy for fintech in this study is P2P lending and the adoption of fintech technology by banks. The number of conventional banks in Indonesia is 107 banks, and this study took a sample of 81 conventional banks. This research period is for 5 years from 2017 to 2021. The results show that P2P lending and fintech adoption do not affect the performance or risk of conventional banks. However, what is interesting about the results of this study is that the interaction between each independent variable with the moderating variable of bank ownership structure shows the results of the influence of the independent variable on the dependent variable which is significant. We find that bank ownership structure is proven to strengthen the effect of P2P lending and fintech adoption on bank risk, while the effect on performance is not significant. We found that the presence of P2P lending will increase the risk of conventional banks. While the effect of fintech adoption shows a lowering effect on bank risk, especially those owned by cooperatives. Our findings support previous research results that the presence of P2P lending will increase bank risk, and the adoption of fintech will decrease risk.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 December 2022
ISBN
10.2991/978-94-6463-066-4_13
ISSN
2352-5428
DOI
10.2991/978-94-6463-066-4_13How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Harmadi
AU  - Wisnu Untoro
AU  - Irwan Trinugroho
AU  - Atmaji
PY  - 2022
DA  - 2022/12/26
TI  - The Effect of Fintech on Conventional Bank Performance and Bank Risk
BT  - Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
PB  - Atlantis Press
SP  - 140
EP  - 152
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-066-4_13
DO  - 10.2991/978-94-6463-066-4_13
ID  - 2022
ER  -