E-PAYMENT INNOVATION IN IMPROVING BANK INDONESIA'S FINANCIAL PERFORMANCE

Authors

  • Rahyuni Rahayu IAIN Ternate, Indonesia
  • Wana Mariska MTsN 2 Kota Makassar, Indonesia
  • Muhammad Fauzan Garantjang

DOI:

https://doi.org/10.29040/ijebar.v6i1.4663

Abstract

Business competition in the financial services industry keeps the banks constantly innovating in services and products. One of the innovations made by the banking industry is e-payment.This study aims to determine the effect of e-payment on financial performance with moderated bank size. The population in this study is banking companies listed on the Indonesian Stock Exchange (IDX) in 2014-2016 as many as 43 banks. Sample selection method used is purposive sampling, so that obtained the number of samples of 10 banks. The data obtained were analyzed using Moderated Regression Analysis (MRA). The results of this study indicate that e-payment has a significant positive effect on financial performance and bank size strengthen the relationship between e-payment to financial performance. The results indicate that innovation in adopting e-payment can improve bank financial performance. The banks need to pay attention to innovation in financial services as a competitive strategy to improve financial performance.

References

Aduda, J. & Nancy, Kingoo. 2012. The Relationship Between Electronic Banking and Financial Performance Among Commercial Banks in Kenya. Journal of finance and Investment Analysis, Vol. 1, No.3.

Guru, B. K., Staunton, J., & Balashanmugam, B. 2000. Determinants of Commercial Bank Profitability in Malaysia. Asian Academy of Management Journal, 5(2), 1-22.

Jenevive, O.C., & Anyanwaokoro. 2017. Electronic Payment Methods and Profitability of Banking Firms in Nigeria. A Panel Data Analysis. Journal of Finance and Accounting.

Kumar, Naveen. 2017. Use of Information Technology in Banking Transaction Using Electronic Payment System. Journal of Bank Management and Financial Strategies, vol.1.

Meilhami, B., Zeinab, V., dan Hussein, M. 2013. The Aeffect of Using Electronic Banking on Profitability of Bank. Interdiciplinary Journal of Contemporary Research in Business, Vol.4.

Muiruri, J.K., dan James, M.N. 2014. Effect of Financial Innovation on the Financial Performance of Commercial Banks in Kenya. International Journal of Humanities and Social Science, Vol.4.

Okiro, Kennedy & Ndungu, Jacky. 2013. The Impact of Mobile and Internet Banking on Performance of Financial Institutions in Kenya. European Scientific Journal, Vol.9.

Rogers, Everett. M. 1995. Diffusions of Innovations. New York: Tree Press.

Roozbahani, F.S., Hojjati, S.N., & Azad.R. 2015. The Role of E-Payment Tools and E-banking in Customer Satisfaction Case Study: Pasargad Bank E-Payment Company. Int. J. Advanced Networking and Application, vol. 7.

Downloads

Published

2022-03-23

How to Cite

Rahayu, R., Mariska, W., & Garantjang, M. F. (2022). E-PAYMENT INNOVATION IN IMPROVING BANK INDONESIA’S FINANCIAL PERFORMANCE. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(1), 381–386. https://doi.org/10.29040/ijebar.v6i1.4663

Issue

Vol. 6 No. 1 (2022): IJEBAR : Vol. 6, Issue 1, March 2022

Section

Articles

Citation Check

License

Authors who publish with IJEBAR agree to the following terms: Authors retain copyright and grant the IJEBAR right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material) the work for any purpose, even commercially with an acknowledgement of the work's authorship and initial publication in IJEBAR. 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 IJEBAR. 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).