Abstract
The rapid development of technology has triggered the emergence of various innovation efforts in the financial sector, one of which is through the phenomenon of financial technology (fintech). This empirical research aims to investigate the effect of fintech development through fintech services adopted by banks and the growth of fintech firms on bank risk taking using a balanced panel of 37 Conventional Commercial Banks in Indonesia for the period 2017 to 2021. Estimates using fixed effect and random effect models, this study finds that fintech services adopted by banks and the growth of fintech firms reduce risk-taking behavior thereby increasing bank stability. These results indicate a complementary relationship between the development of fintech and traditional banking.
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