Digitalization and Efficiency: Technology-based Service  of Indonesia Sharia Commercial Banks

Bella, Firsty Izzata; Himmawan, M. Fikri

doi:10.21043/iqtishadia.v14i2.8983

Cited by 3 publications

(2 citation statements)

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“…In this case, the rejection of H3 strengthens the findings of Nastiti & Kasri (2019). Islamic banks must also expand branch networks, such as branchless banking (Bella & Himmawan, 2021;Nastiti & Kasri, 2019), which is regulated in Financial Services Authority Regulation (POJK) No. 1/POJK.03/2022 concerning Branchless Banking Services under the Inclusive Financial Framework.…”

Section: Discussionmentioning

confidence: 72%

Nexus between financial inclusion and Islamic financing distribution: Evidence from Indonesian MSMEs

Ninglasari,

Sulaeman,

Supriani

et al. 2023

J. Eko. Keu. Isl.

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Purpose – The purpose of this study is to investigate the relationship between financial inclusion and the distribution of Islamic banking financing to Indonesia's MSME industry.Methodology – This study utilizes the Vector Error Correction Model (VECM) approach covering the period between 2015 to 2020.Findings – The study's findings suggest that the use of all-inclusive financial variables, as represented by the number of ATMs, branch offices, and Third-Party Fund (TPF), has a significant effect on the distribution of financing in the short-term but not in the long term. Furthermore, macroeconomic as well as internal control variables, such as inflation and Non-Performing Financing, have been shown to have a significant influence. The impulse-response function analysis shows that the financing distribution responds positively to financial inclusion variables such as ATMs and branch offices. TPF, inflation, ROA, and exchange rate variables were found to have negative responses in the case of a shock.Implications – The findings of this study are expected to be used as a basis to develop government policies, particularly in supporting the post-COVID-19 national economic recovery through a comprehensive financial program that can broaden access to financing from Islamic banks for the general public, particularly MSME actors who have been severely impacted by the COVID-19 pandemic.Originality – This investigation utilizes three distinct indicators to assess the relationship between Islamic financing distribution in Islamic banking and financial inclusion for MSMEs. These include measures of financial inclusion, financial performance metrics of Islamic banking institutions, and macroeconomic variables.

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Section: Discussionmentioning

confidence: 72%

Nexus between financial inclusion and Islamic financing distribution: Evidence from Indonesian MSMEs

Ninglasari,

Sulaeman,

Supriani

et al. 2023

J. Eko. Keu. Isl.

View full text Add to dashboard Cite

show abstract

“… evaluating the impact of reliability, security and speed of remote banking services in the Republic of North Macedonia on customer satisaction [7], as well as the effectiveness of electronic banking services on the profitability and stability of Islamic banks in Indonesia [8]. The issue of digitalization in banks is also discussed among domestic scientists in various aspects:…”

Section: Jel Classification G21mentioning

confidence: 99%

Digitalization of corporate business of Ukrainian banks

ШУЛЬГА¹,

FESIUK²

2022

Herald of KNUTE

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Introduction. Increasing competition between banks requires the introduction of banking products with a new service and economic design, based on modern software, technology and information platforms. Problem. Digitalization is becoming a key trend in conducting business for banks and their corporate clients. The aim of the study is to cluster banks by the level of digitalization and determine the relationship between it and indicators of market power, financial performance and credit risk. Methods. Input normalized indicators for 32 banks of Ukraine, determined using the MINIMAX methodology, were used. The study was based on correlation-regression and cluster analysis. Results. The information base for calculating the digitalization index for banks in the focus group was chosen based on the number of: the number of visitors to banks’ websites, registered users of banks’ mobile applications (including for legal entities and individuals), branded online inquiries, banking self-service devices, subscribers of banks in social media networks. When determining the level of digitalization in corporate business, only two indicators were used: the number of registered legal entities that use mobile bank applications and the number of brand-name online searches for each of them. Three hypotheses were put forward and their empirical verification was carried out, according to the results of which it was established that there is a moderate correlation between the digitalization index and the credit risk indicator and a low correlation between the digitalization index and indicators of financial performance and market power. Among the financial indicators a noticeable correlation was found only between the level of the interest margin and the level of digitalization. Conclusions. For most of the banks in the focus group, a low level of digitalization is inherent in the corporate business. It is proposed to develop a strategy for the development of the corporate business of banks on a new technological platform, which will make it possible to extend digitalization processes not only to typical, but also to exclusive financial services provided to corporate clients, taking into account their individual service.

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Does digitalization affect shariah supervisory board efficiency? Evidence from Islamic banks

Cherni,

Ben Amar

2024

JIABR

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Purpose This study aims to examine how digitalization affects the work efficiency of the Shariah Supervisory Board (SSB) in Islamic banks. Design/methodology/approach This study uses panel data analysis of annual report disclosures over the past 10 years. The authors have selected 79 Islamic banks for the period ranging from 2012 to 2021. The criteria for SSB efficiency used in this research are disclosure of Zakat and disclosure in the SSB report. Findings The econometric results show that digitalization has a positive effect on improving the work efficiency of the SSB in Islamic banks. Accordingly, the authors provide evidence that the higher the bank's digital engagement, the higher the quality of the SSB. Originality/value The findings highlight the need to improve the current understanding of SSB structures and governance mechanisms that can better assist Islamic banks in engaging in effective compliance with recent governance and accounting reforms. Moreover, Islamic banks are the most capable and appropriate to implement and activate digitalization because they are based on a vital root calling for development if there are executives believing in it, as well as legislation supporting and serving them.

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Digitalization and Efficiency: Technology-based Service of Indonesia Sharia Commercial Banks

Cited by 3 publications

References 10 publications

Nexus between financial inclusion and Islamic financing distribution: Evidence from Indonesian MSMEs

Nexus between financial inclusion and Islamic financing distribution: Evidence from Indonesian MSMEs

Digitalization of corporate business of Ukrainian banks

Does digitalization affect shariah supervisory board efficiency? Evidence from Islamic banks

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