1M. Khoiruddin, 2Nur Rahmah Tri Utami
1,2Management Study Program, Indonesian Islamic University
DOI : https://doi.org/10.47191/ijmra/v6-i8-62Google Scholar Download Pdf
ABSTRACT:
Sustainable and inclusive finance are concepts that are currently developing rapidly. This concept emerged as a response to the challenges and needs that exist in the current financial system. This study aims to determine the effect of implementing a green banking strategy, fintech adoption, and financial inclusion on profitability in the banking sector in Indonesia. The object of this study are banking companies listed on the Indonesia Stock Exchange for the 2015-2021 period. In this study, it was found that there were 46 banking companies listed on the IDX, but not all of them were sampled. Panel data regression analysis is used to see the effect of independent variables on the dependent variable. This study shows the simultaneous results that green banking strategy, fintech adoption, and financial inclusion significantly affect banking profitability. Partly, implementing green banking strategies and ATM numbers affect bank profits. Meanwhile, fintech adoption, the number of loans, the number of third parties, and the number of branch offices have no effect.
KEYWORDS:sustainability, green banking, fintech, inclusive finance, banking
REFERENCES1) Aditya, M. A., & Rahmi, A. N. (2022). Pengaruh Financial Techonology terhadap Profitabilitas Bank Umum Syariah Indonesia. Jurnal Keuangan Dan Perbankan, 18(2), 77–88. https://doi.org/10.35384/JKP.V18I2.334
2) Akhiryanti, F. (2018). Meningkatkan Ekoliterasi Anak Melalui Strategi Garden Based Learning di Taman Kanak-kanak: Penelitian Tindakan Kelas di TK Islam Medissina Tahun Ajaran 2017/2018 [Universitas Pendidikan Indonesia]. http://repository.upi.edu/39034/
3) Akhisar, İ., Tunay, K. B., & Tunay, N. (2015). The Effects of Innovations on Bank Performance: The Case of Electronic Banking Services. Procedia - Social and Behavioral Sciences, 195, 369–375. https://doi.org/10.1016/J.SBSPRO.2015.06.336
4) Ali Khrawish, H., & Mousa Al-Sa, N. (n.d.). The Impact of E-Banking on Bank Profitability: Evidence from Jordan. Retrieved July 15, 2023, from http://www.eurojournals.com/MEFE.htm
5) Aliabadi, H. S., Gheysari, H., & Ahmadian, S. (2016). A Survey on the Impact of Using “POS” and “ATM” on Profitability (Return on Assets) of Iranian Private Banks. Iranian Journal of Business and Economics, 3(3).
6) Ayu Larasati, D., Hidayati, S., & Ekonomi dan Bisnis, F. (2017). TINGKAT KECUKUPAN MODAL, DANA PIHAK KETIGA DAN RISIKO BISNIS TERHADAP PROFITABILITAS BANK YANG TERDAFTAR DI BURSA EFEK INDONESIA. Jurnal Ekobis, 4(2), 117–136. https://doi.org/10.35590/JEB.V4I2.740
7) Chaarani, H. EL, & Abiad, Z. EL. (2018). Journal of Internet Banking and Commerce The Impact of Technological Innovation on Bank Performance. Journal of Internet Banking and Commerce, 23(3). http://www.icommercecentral.com
8) Chasbiandani, T., Rizal, N., & Indra Satria, I. (2019). Penerapan Green Accounting Terhadap Profitabitas Perusahaan Di Indonesia. AFRE (Accounting and Financial Review), 2(2). https://doi.org/10.26905/afr.v2i2.3722
9) Chen, F.-W., Feng, Y., & Wang, W. (2018). Impacts of Financial Inclusion on Non-Performing Loans of Commercial Banks: Evidence from China. 10, 3084. https://doi.org/10.3390/su10093084
10) Deka, G. (2015). Green Banking Practices: A Study on Environmental Strategies of Banks With Special Reference to State Bank of India. Indian Journal of Commerce and Management Studies, 6(3).
11) Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2020). The Global Findex Database 2017: Measuring Financial Inclusion and Opportunities to Expand Access to and Use of Financial Services. The World Bank Economic Review, 34(Supplement_1), S2–S8. https://doi.org/10.1093/WBER/LHZ013
12) Gutu, L. M. (2014). The impact of Internet technology on the Romanian banks performance. Proceedings of International Academic Conferences. https://ideas.repec.org/p/sek/iacpro/0702397.html
13) Han, R., & Melecky, M. (2013). Financial Inclusion for Financial Stability Access to Bank Deposits and the Growth of Deposits in the Global Financial Crisis Background Paper to the 2014 World Development Report. http://econ.worldbank.org.
14) Harefa, A. A., Sariguna, P., Kennedy, J., Ekonomi, F., & Bisnis, D. (2018). THE FINANCIAL TECHNOLOGY, REGULATION AND BANKING ADAPTATION IN INDONESIA. Fundamental Management Journal, 3(1), 1–11. http://ejournal.uki.ac.id/index.php/jm/article/view/715
15) Harimaya, K., & Kondo, K. (2016). Effects of branch expansion on bank efficiency: evidence from Japanese regional banks. Managerial Finance, 42(2), 82–94. https://doi.org/10.1108/MF-11-2014-0278/FULL/PDF
16) Hensel, N. D. (2003). Strategic Management of Cost Efficiencies in Networks: Cross-country Evidence on European Branch Banking. European Financial Management, 9(3), 333–360. https://doi.org/10.1111/1468-036X.00224
17) Hirtle, B. (2007). The impact of network size on bank branch performance. Journal of Banking & Finance, 31(12), 3782–3805. https://doi.org/10.1016/J.JBANKFIN.2007.01.020
18) IQAir. (2021). World Air Quality Report (Region & City PM 2.5 Ranking).
19) Jacinta Itah, A. (2014). Impact of Cashless Banking on Banks’ Profitability (Evidence from Nigeria). Asian Journal of Finance & Accounting, 6(2). https://doi.org/10.5296/ajfa.v6i2.6268
20) Kasmir. (2014). Analisis laporan keuangan. Rajawali Press. https://onesearch.id/Record/IOS3450.INLIS000000000003305?widget=1
21) Kementerian Lingkungan Hidup dan Kehutanan. (2021). Laporan Kinerja: Menebalkan Modal Sosial, Mmeperkuat Kinerja Positif Pembangunan LHK.
22) Kistiyaputri, A. (2022). Pengaruh Dana Pihak Ketiga dan Total Aset Terhadap Laba Bank Syariah Indonesia. Jurnal Ekonomika Dan Bisnis Islam, 5(3), 41–51. https://doi.org/10.26740/JEKOBI.V5N3.P41-51
23) Kumar, V., Thrikawala, S., & Acharya, S. (2022a). Financial inclusion and bank profitability: Evidence from a developed market. Global Finance Journal, 53, 100609. https://doi.org/10.1016/J.GFJ.2021.100609
24) Kumar, V., Thrikawala, S., & Acharya, S. (2022b). Financial inclusion and bank profitability: Evidence from a developed market. Global Finance Journal, 53, 100609. https://doi.org/10.1016/J.GFJ.2021.100609
25) Le, T. T., Mai, H. N., Phan, D. T., Nguyen, M. N. T., & Le, H. D. (2021). Fintech Innovations: The Impact of Mobile Banking Apps on Bank Performance in Vietnam. International Journal of Research and Review (Ijrrjournal.Com), 8, 391. https://doi.org/10.52403/ijrr.20210446
26) Mahmudah, N., & Harjanti, R. S. (2016). ANALISIS CAPITAL ADEQUACY RATIO, FINANCING TO DEPOSIT RATIO, NON PERFORMING FINANCING, DAN DANA PIHAK KETIGA TERHADAP TINGKAT PROFITABILITAS BANK UMUM SYARIAH PERIODE 2011-2013. Prosiding Seminar Nasional IPTEK Terapan (SENIT) 2016 Pengembangan Sumber Daya Lokal Berbasis IPTEK, 1(1). http://ejournal.poltektegal.ac.id/index.php/prosiding/article/view/370
27) Mohammad Hossein, S. (2013). Consideration the effect of E-Banking on Bank Profitability; Case Study Selected Asian Countries. Journal of Economics and Sustainable Development Www.Iiste.Org ISSN, 4(11). www.iiste.org
28) Ogutu, M. (2018). Effect Of E-banking On Financial Performance Of Listed Commercial Banks In Kenya. https://repository.kcau.ac.ke/handle/123456789/493
29) PERATURAN OTORITAS JASA KEUANGAN NOMOR 51 /POJK.03/2017 TENTANG PENERAPAN KEUANGAN BERKELANJUTAN BAGI LEMBAGA JASA KEUANGAN, EMITEN, DAN PERUSAHAAN PUBLIK, Pub. L. No. 51 /POJK.03/2017, Otoritas Jasa Keuangan (2017).
30) PERATURAN BANK INDONESIA NOMOR 14/ 15 /PBI/2012 TENTANG PENILAIAN KUALITAS ASET BANK UMUM, Pub. L. No. 14/ 15 /PBI/2012, Bank Indonesia (2012).
31) Pusva, I. D., & Herlina, E. (2017). Analysis of the implementation of green banking in achieving operational cost efficiency in the banking industry. The Indonesian Accounting Review, 7(2), 203–210. https://doi.org/10.14414/tiar.v7i2.1602
32) Rachman, A. A., & Saudi, M. H. (2021). Green Banking And Profitability (Banks Registered On The Sri-Kehati Index In Indonesia Stock Exchange 2015 - 2019). Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(8), 473–486. https://doi.org/10.17762/TURCOMAT.V12I8.2824
33) Rauf, S., & Fu, Q. (2014). Integrated Model to measure the Impact of E-Banking Services on Commercial banks’ ROE: Empirical Study of Pakistan. Proceedings of the 2014 International Conference on Information, Business and Education Technology, 90, 19–22. https://doi.org/10.2991/ICIBET-14.2014.6
34) Sharma, M., Choubey, A., Sharma, M., & Choubey, A. (2022). Green banking initiatives: a qualitative study on Indian banking sector. Environment, Development and Sustainability, 24, 293–319. https://doi.org/10.1007/s10668-021-01426-9
35) Shihadeh, F. H., Hannon, A. M. T., Guan, J., Ul Haq, I., & Wang, X. (2018). Does financial inclusion improve the banks’ performance? Evidence from Jordan. Research in Finance, 34, 117–138. https://doi.org/10.1108/S0196-382120170000034005/FULL/XML
36) Shihadeh, F., & Liu, B. (2019). DOES FINANCIAL INCLUSION INFLUENCE THE BANKS RISK AND PERFORMANCE? EVIDENCE FROM GLOBAL PROSPECTS. Academy of Accounting and Financial Studies Journal, 23(3).
37) Sumra, S. H., Manzoor, M. K., H. Sumra, H., & Abbas, M. (2011). The Impact of E-Banking on the Profitability of Banks: A Study of Pakistani Banks. Journal of Public Administration and Governance, 1(1), 31. https://doi.org/10.5296/JPAG.V1I1.692
38) UNEP. (2010). Green Economy Report: A Preview. https://plagiarism.repec.org/trica-papuc/trica-papuc3.pdf
39) 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. https://doi.org/10.1016/J.RIBAF.2020.101338
40) Wei, W.-S., Nguyen, M.-T., & Nguyen, P.-H. (2021). Does Loan Growth Impact on Bank Risk? SSRN Electronic Journal. https://doi.org/10.2139/SSRN.3964586
41) Widarjono, A. (2017). Ekonometrika Pengantar dan Aplikasinya Disertai Panduan EViews. STIM YKPN.
42) Widyaningsih, N., & Hersugondo, H. (2021). INKLUSI KEUANGAN DAN PROFITABILITAS BANK DI INDONESIA. Jurnal Ilmu Manajemen Dan Akuntansi Terapan (JIMAT), 12(2), 175–189. https://doi.org/10.36694/JIMAT.V12I2.327
VOLUME 06 ISSUE 08 AUGUST 2023
There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.
Our Services and Policies
Authors should prepare their manuscripts according to the instructions given in the authors' guidelines. Manuscripts which do not conform to the format and style of the Journal may be returned to the authors for revision or rejected.
The Journal reserves the right to make any further formal changes and language corrections necessary in a manuscript accepted for publication so that it conforms to the formatting requirements of the Journal.
International Journal of Multidisciplinary Research and Analysis will publish 12 monthly online issues per year,IJMRA publishes articles as soon as the final copy-edited version is approved. IJMRA publishes articles and review papers of all subjects area.
Open access is a mechanism by which research outputs are distributed online, Hybrid open access journals, contain a mixture of open access articles and closed access articles.
International Journal of Multidisciplinary Research and Analysis initiate a call for research paper for Volume 07 Issue 12 (December 2024).
PUBLICATION DATES:
1) Last Date of Submission : 26 December 2024 .
2) Article published within a week.
3) Submit Article : editor@ijmra.in or Online
Why with us
1 : IJMRA only accepts original and high quality research and technical papers.
2 : Paper will publish immediately in current issue after registration.
3 : Authors can download their full papers at any time with digital certificate.
The Editors reserve the right to reject papers without sending them out for review.
Authors should prepare their manuscripts according to the instructions given in the authors' guidelines. Manuscripts which do not conform to the format and style of the Journal may be returned to the authors for revision or rejected. The Journal reserves the right to make any further formal changes and language corrections necessary in a manuscript accepted for publication so that it conforms to the formatting requirements of the Journal.