Articles

Effect of Loan Disbursement, Non-Performing Loan (NPL) and Current Account-Saving Account (CASA) Ratio on The Profitability of Digital Bank Listed on Indonesia Stock Exchange

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Technological advances have brought updates to business processes and banking services in Indonesia, namely the birth of banks that provide digital-based services to customers or called Digital Banks. The development of this digital banking ecosystem is supported by the economic conditions that have recovered after COVID pandemic ended. Digital transformation has certainly encouraged the emergence of several Digital Banks that have become Game Changers in the financial services business by offering convenience in digital products and services. A number of Digital Banks have succeeded in becoming public companies, recording credit growth, managing the non-performing loan ratio, increasing the growth of third-party funds, especially for online savings products through the digital banking products offered, and increasing the profitability ratio. Objective of this research is to determine the effect of Loan disbursement, NPL and CASA (Current Account-Saving Account) Ratio on the Profitability of Digital Bank that listed on Indonesia Stock Exchange for the 2018-2024 research year. The population data used is go-public Digital Bank and the sample is Digital Banks that are included in the Bank Group category based on Core Capital 1 and 2. Secondary data that used in this research are quarterly and annual bank report which are available on websites of Indonesian Stock Exchange and Financial Services Authority.

Evaluation of Digital Banking Efficiency in Indonesian Banking Sector using Data Envelopment Analysis (DEA) Approach

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The digital banking industry in Indonesia has experienced significant growth, driven by changing customer demands, technological advancements, and regulatory support. The digitalization of Indonesian banks aims to enhance cost efficiency. This research utilizes the Data Envelopment Analysis (DEA) method to measure the cost efficiency of Indonesian commercial banks. The research includes digital banks as business units and neo-banks, comparing their cost efficiency from 2012 to 2020, with digital banks and neo-banks generally operating more efficiently than non-digital banks. The findings highlight the significant impact of digital transformation on cost efficiency in the banking industry. Stakeholders, including banks and financial authorities, can utilize these insights to plan strategies, reduce operating costs, and enhance cost efficiency. Further research can explore additional factors, such as macroeconomic influences, and categorize commercial banks based on their core capital categories.

Marketing Communication Strategy to Increase Customer Acquisition in Digital Bank: A Case Study PT Bank Sukses Bersama, Tbk

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Digital banks have emerged as a new phenomenon in Indonesia’s financial services ecosystem. Because it uses technology and provides efficient services, the emergence of the digital bank is expected to be a game changer. In 2021, PT Bank Sukses Bersama, Tbk launched the life-centered Sukses Application, which simplifies, collaborates, and innovates financial management. Bank Sukses Bersama’s transformation from a conventional bank to a digital bank aims to increase its business growth and efficiency. However, since its launch, Bank Sukses Bersama has not attained a cost-to-revenue ratio which would be optimal in comparison to its competitors. The research objectives for this study are to evaluate Bank Sukses Bersama’s market segmentation and find opportunities to increase users by reaching more potential markets through new segmenting, targeting, and positioning, as well as to propose a marketing communication strategy for Bank Sukses Bersama in order to increase customer acquisition to maximize the income and improves Bank Sukses Bersama’s performance. This research utilized both primary and secondary sources of data The primary data was collected through questionnaires targeted for 150 respondents of bank customers in Indonesia. The purpose of the questionnaire is to obtain responses from bank customers in Indonesia regarding digital banks in Indonesia, including their perceptions of Bank Sukses Bersama. This research assessed internal and external analysis of Bank Sukses Bersama in digital banking industry. The suggested Bank Sukses Bersama marketing communication strategy proposes an approach for emphasizing the brand’s value proposition, engaging customers through storytelling and personalization, and utilizing digital platforms and collaborations to increase customer acquisition and retention. This strategy intends to position Bank Sukses Bersama as an innovative and trustworthy digital banking solution in Indonesia through integration with the target population and the bank’s fundamental values. The scope of this study is mainly focus on Bank Sukses Bersama as a digital bank. The company’s identity has been concealed for publicity and reasons related to confidentiality.

Indonesian Digital Bank Stock Valuation: Case Study of Bank Jago in 2022

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In 2019, in the midst of the early stage of the digital banking industry in Indonesia Bank Arto underwent a transition and rebranded as Bank Jago, a digital bank. As a result of Bank Jago’s transition from a traditional commercial bank into a digital bank, the company’s stock reached an all-time high share price of Rp 19,000 per share in January 2022. This was the highest share price the company had ever achieved. The public’s excitement eventually subsided, however, and this resulted in a decline in the price of the company’s shares. The price per share of Bank Jago was recorded at Rp 4,200 in November of 2022, which was 77% lower than the price recorded in the beginning of 2022.

This research will analyze the financial performance of Bank Jago through the utilization of financial ratio analysis, and to determine the intrinsic value of Bank Jago through the utilization of absolute valuation using the Dividend Discount Model as well as the competitiveness and environment of the Indonesian digital banking industry using PESTEL and Porter Five Forces. From the Porter Five Forces, Indonesian digital banking industry indicates a high level of competitiveness, whilst the industry itself in Indonesia through the PESTEL analysis indicates that it will continue to grow due to the level of support from the political and government factors. According to the analysis of financial ratios, Bank Jago’s profitability has increased significantly over the past three years, as indicated by the rapid growth rate of the NIM, ROE, and ROA ratios since the time of its transformation. With a ratio of 145.86%, Bank Jago displayed a level of liquidity that was unsatisfactory. According to the projections using Dividend Discount Model, Bank Jago’s intrinsic value is currently undervalued by -23%.