The Relationship Between E-Banking and Financial Performance of Go Public Bank in Indonesia

Abstract

E-Banking is a form of IT application that serve customers when doing transactions using their personal accounts by computer or mobile phone that is connected to the internet, therefore noncash transactions applied. This research aims to analyze the relationship between the application of E-Banking and the financial performance of go public bank in Indonesia. It was conducted at 41 go pulic bank as the research sample that selected based on purposive sampling. The data used is sourced from the annual report for 2014-2018. As the dependent variable, financial performance peroxide by Return on Equity (ROE). The independent variable is E-Banking which consists of two variables namely Internet Banking and Mobile Banking which are measured using a dummy. This study uses control variables consisting of risk, liquidity, bank size and business cycles. The data analysis technique used is partial correlation analysis. The results of this study indicate that: (1) internet banking is positively and significantly correlated with the financial performance of banks going public in Indonesia, (2) mobile banking is positively correlated and not significant with financial performance of going public banks in Indonesia.

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