Proceedings of the 4th International Conference on Economic, Business, and Accounting Studies (ICEBAST 2025)

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Quantifying The Digital Revolution: An Investigation on the Impact of Digital Banking on Key Indicators of Financial Performance in Indonesia

Authors
Intan Nurul Awwaliyah1, *, Arnis Budi Susanto1, Ema Desia Prajitiasari1, Abisyah Umar Gozali1
1Faculty of Economics and Business, University of Jember, Jember, Indonesia
*Corresponding author. Email: in.awwaliyah.feb@unej.ac.id
Corresponding Author
Intan Nurul Awwaliyah
Available Online 26 December 2025.
DOI
10.2991/978-94-6463-956-8_17How to use a DOI?
Keywords
digital bank; transformation; financial performance; comparative analysis
Abstract

Digital economic and financial transactions have grown significantly due to increasing public preferences for online transactions. This has led to the need for digital bank transformation in the banking sector. This study aims to determine and analyze the impact of digital bank transformation on the financial performance of the banking sector in Indonesia. Financial performance is indicated by profitability, liquidity, risk, and efficiency ratio, each represented by Return on Assets (ROA), Loan to Deposits Ratio (LDR), Non-Performing Loans (NPL), and Operational Efficiency Ratio (OER), respectively. The study employed a comparative descriptive method and analyzed five commercial banks that had undergone digital transformation over the last three years. Results showed significant differences in financial performance, specifically in terms of profitability, liquidity, and risk, before and after the transformation. However, there was no evidence of different performance in terms of efficiency. This research provides valuable information for banks and financial institutions to understand the impact of digitalization on their financial performance in Indonesia. However, further research is recommended to increase the observation period and the number of banks analyzed. A comprehensive analysis, including other aspects such as capital, and utilizing tools like panel data analysis, can provide more insights.

Copyright
© 2025 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 4th International Conference on Economic, Business, and Accounting Studies (ICEBAST 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
26 December 2025
ISBN
978-94-6463-956-8
ISSN
2352-5428
DOI
10.2991/978-94-6463-956-8_17How to use a DOI?
Copyright
© 2025 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  - Intan Nurul Awwaliyah
AU  - Arnis Budi Susanto
AU  - Ema Desia Prajitiasari
AU  - Abisyah Umar Gozali
PY  - 2025
DA  - 2025/12/26
TI  - Quantifying The Digital Revolution: An Investigation on the Impact of Digital Banking on Key Indicators of Financial Performance in Indonesia
BT  - Proceedings of the 4th International Conference on Economic, Business, and Accounting Studies (ICEBAST 2025)
PB  - Atlantis Press
SP  - 212
EP  - 231
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-956-8_17
DO  - 10.2991/978-94-6463-956-8_17
ID  - Awwaliyah2025
ER  -