Digital Bank Research Articles

ANALISIS PERILAKU KONSUMEN TERHADAP PENGGUNAAN PLATFORM DIGITAL BANK (Studi Pada Generasi Z Kota Malang)

Technology and an increasingly developing economy that has an efficient impact on the use of cash. When using cash to transact with a large enough value it becomes inefficient. Crimes such as robbery, theft and counterfeiting cause people to have a fear of storing or carrying large amounts of cash. The purpose of this study was to determine how the influence of service quality, convenience, innovation, and trust on customer satisfaction in using the bank's digital platform. The research sample used was 200 people from Generation Z in Malang City. The research method used is a type of quantitative research with data analysis techniques using logistic regression. The results show that simultaneously service quality and convenience have an effect on customer satisfaction in using the bank's digital platform, while partially innovation and trust have no significant effect on customer satisfaction in using the bank's digital platform. banks need to increase innovation through digital banks they have and provide.

Türk Bankacılık Sektörü Müşterilerinin Şubesiz Dijital Bankacılığa Yönelik Olumsuz Tutumlarını Etkileyen Faktörler Üzerine Bir Araştırma

The rapid digitalization in the banking sector has revealed the branchless digital banking approach, unlike the traditional banking approach, where branches are used extensively as distribution channels. The customer portfolios reached by the new generation branchless digital banks attract great notice. This new banking approach also attracted the attention of the Turkish banking sector and branchless digital banking activities were made possible with the regulations prepared by the BRSA. Branchless digital banking is a new field of activity in Turkish banking sector and it is accepted that on the adoption of an innovation by the users the intention towards the innovation is effective, and on the intention towards the innovation the attitude towards the innovation is effective. It is stated that many external factors are effective on the attitude towards innovation. Therefore, in this research, it has aims to investigate some factors that affect on the negative attitudes of bank customers towards branchless digital banking. For this purpose, an online questionnaire was applied to 357 traditional bank customers and the answers were subjected to regression analysis. With the regression analysis, the effects of trust, perceived usefulness, traditional bank usage habits and satisfaction factors on branchless digital banking on the negative attitude towards branchless digital banking were analyzed. The results show that the negative attitude towards branchless digital banking was significantly and positively affected by traditional bank usage habits, trust towards branchless digital banking and perceived benefit towards branchless digital banking, but not significantly affected by traditional bank satisfaction.

A Comparative Study of Banking Financial Performance Before and After the Bank Digitalization in Indonesia

In recent years digital banks' presence has become increasingly widespread in Indonesia. Digital banking has become one of the most essential and modern innovations. This innovation aims to improve the efficiency and quality of bank operations. This strategy raises the question of whether the digitalization strategy carried out by banks has a significant positive effect on bank financial performance. This study uses the Difference-in-Differences method, where digitalized Banks are the Treatment Group and non-digitalized Banks are Control Groups. Bank digitalization is not carried out simultaneously, and it indirectly creates an ideal treatment and control group for conducting impact evaluation research. This study uses 3 banks that have adopt digitalization as treatment group and 12 commercial banks that are part of the Bank Group based on Core Capital (KBMI) 2 and 3 as control group. The empirical analysis was performed on a data panel of 15 KBMI 2 and KBMI 3 banks' financial performance. The observation period of pre-treatment is from 2012 to 2015, and post-treatment is from 2018 to 2021. The results of this study found that the bank's financial performance significantly did not increase after digitalization. The results of this study can be used as a source of information for banks in Indonesia to consider digitalization strategy to increase banking financial performance.

Investment Decision Using Capital Asset Pricing Model (CAPM) in Indonesia’s Banking Sector

The focus of this research was to determine and investigate the application of the Capital Asset Pricing Modeling (CAPM) technique in analyzing investment decisions in particular banking stocks that specialize in digital banking operating models. Investors generally follow the IT or digital sector (Tech stocks) due to the sector's track record of delivering high returns and the promise for even greater returns in the future. In the banking sector, investors continue to pursue digital bank stocks as their holdings because they believe they may create value and expand. Six digital banking stocks were chosen for this study, all of which are listed on the Indonesian Stock Exchange and have an observation period of April 2021 to March 2022. These stocks are Bank Jago Tbk, Bank Neo Commerce Tbk, Bank Danamon Tbk, Bank Permata Tbk, Bank BTPN Tbk, and Bank OCBC NISP Tbk. This research uses linear regression analysis to determine the beta coefficient for the Capital Asset Pricing Modeling (CAPM) method and compares the expected return to the stock market's rate of return during the observation period in order to further differentiate between undervalued and overvalued stocks. The study found that two of the six digital banking companies had higher returns than expected (undervalued/efficient stocks), namely Bank Jago and Bank Neo Commerce, with the remaining four categorized as overvalued/inefficient.

Analysing Regulatory Framework for Silver Exchange Traded Funds, Prepaid Payment Instruments, Digital Banks, Etc.

Analysing Regulatory Framework for Silver Exchange Traded Funds, Prepaid Payment Instruments, Digital Banks, Etc.

Customer satisfaction in digital banking sector in Vietnam: a meta-case approach

As the digitalization of financial services increases, it is the customers who benefit, and the banks have more capacity to enhance the experience and digital satisfaction of their target customers. The paper focuses on an important issue of the Vietnamese banking system. It is the process of digital transformation through applying leading fintechs to their core banking platform. Therefore, the main objective of this research is to explore the possible relationship between customer satisfaction with digital banking services and the other observed variables due to the theory of SERVQUAL. This study reaffirms and adds to the measurement scale system of customer satisfaction concepts while experiencing digital banking services. This helps researchers in the banking sector of Vietnam and around the world have a scale to conduct their researches on customer satisfaction. The author also uses quantitative analysis for a random sample survey within the banking network of Northern region of Vietnam (290 samples in total). Descriptive analysis, reliability analysis of scale, exploratory factor analysis, or multiple regression analysis all provide better perspectives on the relationship between customer satisfaction and the digital services that banks are offering. The major findings of the study involve the fact that focusing on minimizing response time to customers' inquiries and individualizing services to each one of them are the things that the digital banks in Vietnam need to do beforehand. To conclude, the roles of tangibles and responsiveness in the digital banking services can only be examined much more thoroughly in the upcoming researches while this one cannot.

Improving the Effectiveness of Business Banking Loan Processing and Cross-Selling Activity Using Systemic Design Thinking Case Study: Bank Dewangga Indonesia (BDI)

Technology and Digital Transformation have been growing swiftly, and the world seems borderless with the existence of the internet. This is undeniably affecting all of the industries in the world, and the banking industry is a part of it. Currently, the customer prefers to do it whenever and wherever they are, of course with the help of the internet. It also occurred in loan processing. The faster the services and processes, the more loyal the customer is to the bank, and the more profit that the bank will gain. BDI, as one of the State-Owned Companies in Banking, has been trying to transform the business process from a traditional way to a digital bank that can seamlessly accommodate all customer needs. BDI is aware that depending on loan products is not sustainable for the business; once the business in a country falls like it was at the beginning of Covid-19, the company could not avoid the negative impact, the loan quality was declining, and of course, the profit is shrinking compared to previous years. This research aims to identify BDI’s effectiveness in business banking loan processing and cross-selling activity. It will also assess which part of the business systems can be improved or even transformed into new business processes. The business process is quite complex and related to each other; for this qualitative research, the author uses the systemic design thinking method with six main processes: inquiring, framing, formulating, generating, facilitating, and reflecting. The result of the study found that the current business banking loan processing and cross-selling activity is not fully effective and not optimal to support and compete in the market. In the conclusion, author also listed some recommendations to improve the effectiveness of loan processing and cross-selling to lift the company’s profit.

Pengaruh User Interface, Brand Image, dan Digital Literacy terhadap Minat Penggunaan Bank Digital

<em>Changes always follow technological transformation in the pattern of community needs, and digital financial services are no exception. One of the alternatives that offer convenience and convenience in making transactions is gadgets, which are increasing in intensity in their use in the banking sector. This study aims to determine the effect of the independent variables, namely the user interface, brand image, and digital literacy, on the dependent variable, namely the interest in using digital banks. The research method used in this study is a quantitative method with an associative approach with a target of 120 respondents from the Y and Z generation groups. In contrast, the data analysis technique uses multiple linear regression analysis. The findings in this study indicate that the user interface and digital literacy variables have a partially significant effect on the interest in using digital banks. On the other hand, the brand image variable has no significant impact on the good of using digital banks. Simultaneously, the three variables consisting of the user interface, brand image, and digital literacy significantly affect the interest in using digital banks in generations Y and Z.</em>

Digital bank transactions and performance of the Indian banking sector

ABSTRACT Our study examines the impact of digital bank transactions on the performance of Indian banks. The study aims to identify the digital mode of transaction parameters that influence financial and operating performance and reduce bank costs. A panel data set has been prepared for 2011 to 2020, considering 32 public and private banks. On the prima facie, the share of public sector banks has declined in the digital mode of transactions on the counterpart of private sector banks. It’s evidenced that a 1% increase in the value of Real-Time Gross Settlement (RTGS) and National Electronic Fund Transactions (NEFT) causes a rise of 0.03% and 0.08% in the business per employee, respectively. Indeed, a change in the RTGS and NEFT transaction further explains CASA to Deposit ratio (0.016% and 0.0078%). Also, a change in RTGS shows a prominent effect on the advances (0.7%). Credit card transactions at ATMs and POS have negatively impacted the cost of funds. Our study proposes two practical implications: First, acceleration in promoting RTGS-based transactions is required; consequently, it will enhance the bank’s performance. Secondly, banks should facilitate credit-based digital transactions to lessen the cost of funds.

What is the future of the bank branch in the midst of the 4.0 industrial revolution? Answers from Vietnam

Digital channels (websites, bank apps, mobile banking) are incrementally improving as a result of technology innovation and changing customer behavior. The unprecedented Covid-19 pandemic has just added to this trend by urging people to work and make all financial transaction through the Internet. In this context, the question arises of whether banks should revive their physical branches or take the opportunity to shift to mainly digital platform? This research focuses on the branch network trend of Vietnamese commercial banks during the period 2012–2019 to answer the question, what is the contribution of bank branch networks to the banks’ profits. Panel data from 22 largest Vietnamese commercial banks in terms of owners’ capital has been analyzed, using Random Effect Model (REM) regression models. The results show that Vietnamese banks are still expanding their branch networks, despite the fact that bank customers are increasingly engaging in digital bank services. The number of branches has a positive correlation with the banks’ profits, although there is a disparity between large network banks and the rest. The research suggests some implications that can help optimize the branch network in the context of digitalization in an emerging market.

The role of Islamic financial institutions in facing socio-economic problems during the covid-19 pandemic

This research was established of knowing the action in which the Sharia Financial Organizations could take facing economic social problems in the Covid-19 era in Indonesia. This research used qualitative-descriptive approach method with the technique of data collections. The data collections which was analyzing written sources such as scientific journal, literature review, books, mass media articles which talked about this issue and the documents which were related to the object of this research. The data were analyzed with data reduction technique by collecting the data based on the regulation, displaying the data by analyzing them based on research methods and then concluding the data to simplify the discussion. The result of this research is explaining the responsibility of Sharia finances institute facing economic social problems in the Covid-19 era. Which is as the action of the role of sharia banking which is as the distributor of government social activity, facilitating the distribution of financing such as KUR and providing installment relief, serving customers through digital bank services, the role of Islamic pawnshops with restructuring and relaxation of credit, pawn care with 0% interest and distribution of interest subsidies to MSMEs. Provide funds with a special system in accordance with the conditions of the community, especially in small towns and villages. and the role of BMT as a social intermediary institution by collecting ZISWAF and conducting financial stimulation such as distributing qardhul Hasan financing, facilitating the cooperation agreement (Mudharabah) they can help the MSMEs to continue our business in the condition in Covid-19.

A COMPARATIVE LEGAL STUDY ON NEOBANK BETWEEN SOUTH KOREA AND INDONESIA

Development of technology in the banking sector has introduced the concept of Neobank (digital bank or Internet-only bank) in South Korea and Indonesia. This study aims to analyze the regulations of in South Korea and Indonesia in order to ascertain the differences and similarities of the regulations of the two countries and eventually to provide the ideal regulatory solution in managing Neobank. The research adopted a comparative law research which is one of the types under normative legal research. It utilized secondary data. The primary legal materials were the Act on Special Cases Concerning Establishment and Operation of Internet-Only Banks of South Korea and the Indonesian Bank Circular No.6/18/DPNP 2004 and Regulation of Financial Services Authority No.12 /POJK.03/2018. The secondary legal materials consisted of articles journals, books and other materials relevant to the topic under discussions. All secondary data was collected from library research and it adopted an analytical and juridical qualitative approach. It found that the establishment of a Neobank in South Korea and Indonesia are both regulated in the banking laws of each country in general, but have their own specific regulations. South Korea is under the Act and Indonesia is at the regulatory level of the Financial Services Authority. Fundamentally, South Korea's Neobank is more progressive in implementing its technology than Indonesia, which still uses conventional bank (commercial banks) as the backbone to operate in the form of digital bank.

Banks 4.0 in Brazil: possibilities to ensure fintechs financing role through its market positioning

ABSTRACT The transformations brought by Industry 4.0 are many and comprehending their manifestations in the financial sector sounds mandatory to understand the new financing possibilities and, on the threshold, the very future of the sector. So far, the Brazilian reality in the banking sector includes fintechs, digital banks and open banking, all of which represent the deep transformations underway in the country’s credit market. But to what extent can these emerging outsiders effectively fulfil this financing role in the Brazilian context? From a neo-Schumpeterian approach, the aim of this study was to describe the main 4.0 technological trajectories and its new agents in the Brazilian banking sector, as well as the competitive strategies of the well-established incumbent banks, to understand how competitive conditions can ensure the market permanence of fintechs. Through an analytical overview, this based on a rigorous qualitative analysis of publications and available data, our study suggests that advances of the national regulatory framework for fintechs are a first-order recommendation if the objective is to really ensure the financial strength and liquidity both needed for these new players. In this context, the regulatory sandboxes can play an important role.

The Effect of Changes in the Value of Conventional Interbank Transfers and Digital Banks in Technological Development

The digital revolution in the last decade has drastically changed the transaction behavior of economic agents. Consumption patterns are shifting to shopping on digital platforms and demanding an all-in-one payment method. From 2014 to 2021, Bank Indonesia noted that Indonesia experienced an increase in income. Even during the COVID-19 pandemic, many startups in Indonesia played a role in helping Indonesia's economic activities and stabilizing people's incomes. In addition, Bank Indonesia also helps Conventional Banks to compete with Startups that have become Digital Banks by creating an Open-Banking-based BI-Fast program. This program also helps Retail UMKM make it easier for the community to make payments at a cost of IDR 2500.

Analysis and main digital bank development directions in Russia

Digital technologies are rapidly penetrating the banking sector, making it more flexible, mobile and able to meet the changing needs and preferences of customers under the influence of the digital transformation of the economy. In the current situation, banks have to invest a significant amount of funds in the development of innovations in order to remain in demand in the market. This requires banks not only to change the way they provide services and build communications with customers, but also to qualitatively restructure business processes, methods and approaches to their management. The main purpose of the study is to analyse the features of the formation and development of digital banks in Russia, identify their main types and characterise the main groups of business models. During the study, special attention was paid to the factors contributing to the success of the implementation of the bank’s digital business model. The use of clustering methods, comparative analysis made it possible to distinguish 5 groups of digital banks based on the identity of the operations performed. A comparative analysis of the performance indicators of leading traditional credit institutions and wellknown digital banks has been made. The indicator “return on equity (ROE)” was used as the main indicator for comparative analysis. As the study showed, digital banks were the leaders in terms of high ROE. It article are made about the further trend in the development of digital banks towards the creation of their own platforms and ecosystems, with the observed trend of gradual blurring of the lines between traditional and digital banks.

Kebutuhan transformasi bank digital Indonesia di era revolusi industri 4.0

The occurrence of the Covid-19 pandemic forced humans to adapt to technology, not least in terms of finance, namely transactions in banking. This study aims to analyze the transformation of the banking industry into a digital bank in providing services to customers. This research is a type of qualitative research using secondary data from reliable literacy. The results of this study indicate that the transformation into a digital bank provides many advantages for banks to be able to continue to survive in running their business. Where digital banks are the choice of customers in transacting in the financial sector because it is easy, fast, and efficient. Transforming into a digital bank can also increase more customers and fee base income for banks because they can collaborate with fintech and e-commerce and can be efficient in managing bank assets which in turn can increase bank profits exponentially. However, in transforming into a digital bank, banks must have a strong foundation, especially in terms of infrastructure and security of customer data that is vulnerable to hacking attacks (cyber crime). So that in the Industrial Revolution 4.0 era technology is the main key in winning the competition and remaining sustainable in running a business, for that the banking sector in Indonesia is required to continue to innovate in providing the best service to its customers.

Digital Money and Central Bank Operations

Digital Money and Central Bank Operations

Design and Implementation of Unconstrained Optimization Algorithm for Non-Uniform Filter Banks

In communication systems, techniques which provide high resistance against Interchannel Interference under high data rate transmission become vital [1]. Hence, an efficient algorithm for design and implementation of non-uniform digital filter banks using optimization parameters is presented. The design problem is based on unconstrained optimization of cut-off frequency (ωc) for Finite Impulse Response (FIR) filter banks for optimum design of transmultiplexer depending on near perfect reconstruction [2]. The objective function is chosen as Interchannel Interference and amplitude distortion (Eam) with ωc, As, and roll off factor as varying parameter [3]. The proposed algorithm will be validated for real-time video processing with 40dB attenuation, which are sufficient to ensure an output of adequate quality.

Effect of Working Capital Management and Earnings Management on Stock Return of Digital Bank Companies Listed on the Indonesia Stock Exchange

This study aims to determine the effect of working capital and earnings management on the stock returns of digital bank companies listed on the Indonesia Stock Exchange. This research uses quantitative research with a case study approach. The research variables are divided into the dependent variable (working capital management and company profit management) and the independent variable (stock returns). The working capital management variable uses the Cash Conversion Cycle (CCC) proxy, while the company's Earnings Management variable uses the Efficient Earning Management (EEM) proxy. Analysis of research data using the SPSS 19.0 for windows program and several analytical techniques, namely normality test, coefficient of determination (R2), F statistical test, and t statistical test. Based on the results and data analysis in this study, it can be concluded that digital bank stock returns are not influenced by the company's working capital management but are positively and significantly influenced by its earnings management.

Transitioning Towards a Fully Digital Banking Environment: Analyzing Financial Consumption Preferences of Metro Manila Banking Customers

The emergence of technology, combined with the adoption and integration of new practices, has greatly affected multiple business fields, including the Philippine banking industry. This leads to the entrance of fully digital banking platforms, a potential alternative to brick-and-mortar banks. Would Metro Manila banking customers utilize fully digital banks, or would they prefer the established traditional banking institutions as their personal choice for financial services and transactions? By surveying 385 respondents, the researchers obtained and analyzed information about the preferences and behavior of banking customers to learn more about the degree to which customer characteristics affected their preferences for certain banking products. This study proved that Metro Manila banking customers have a strong inclination towards physical or traditional banks, given that 60.5% of the total respondents are traditional banking users compared to 4.4% for fully digital banks and 35.1% for both traditional and fully digital banks. Decision variables such as convenience, efficiency, customization/personalization, security, and privacy also played a significant role in evaluating and assessing customer motivation in determining a preference. The results yielded a more localized and concentrated approach that exhibits the factors regarding traditional and fully digital banks that would potentially help the Philippine banking industry to adjust and adapt to emerging technology and consumer needs.