Analysis of Third-Party Funds and Interest Rates on Financial Performance, with Financial Technology as a Moderating Variable: Conceptual Review

DOI

10.2991/978-94-6239-811-5_38How to use a DOI?

Keywords

Financial Performance; Financial Technology; İnterest Rates; Third-Party Funds

Abstract

The purpose of this research is to provide a conceptual framework for understanding the impact of third-party funds and interest rates on commercial bank financial performance, with financial technology serving as a moderating element. This study takes a conceptual review approach, combining pertinent literature and past research results. Agency theory serves as the framework for explaining bank management’s obligations as agents in managing public funds, modifying strategy in reaction to interest rate fluctuations, and leveraging financial technology effectively. The study’s findings suggest that third-party funds have the ability to boost financial performance since they serve as banks’ principal source of capital for intermediation and credit distribution. Interest rates effect financial performance because they affect financing costs, interest revenue, and bank profitability. Furthermore, financial technology is thought to increase the link between third-party funds and interest rates in terms of financial performance by boosting operational efficiency, transparency, service quality, and risk management. Theoretically, this framework should shed light on how financial technology might help banks excel in the face of rising competition, shifting monetary policies, and the continuous digitalisation of financial services in Indonesia. Practically, it should lay the groundwork for future studies in the banking industry.

Copyright

© 2026 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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TY  - CONF
AU  - Titik Susilowati
AU  - Sri Hermuningsih
AU  - RiskinHidayat
PY  - 2026
DA  - 2026/10/29
TI  - Analysis of Third-Party Funds and Interest Rates on Financial Performance, with Financial Technology as a Moderating Variable: Conceptual Review
BT  - Proceedings of the International Conference on Business, Economic, and Social Sustainability (ICOBES 2026)
PB  - Atlantis Press
SP  - 483
EP  - 492
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-811-5_38
DO  - 10.2991/978-94-6239-811-5_38
ID  - Susilowati2026
ER  -