Mobile Banking Adoption and the Performance of Mid-Tier Indonesian Banks: A Google Play Store-Based Timing Approach

Roy Prakoso; Chaerani Nisa; Tia Ichwani; Widya Safitri; Siti Dona Dahliantari

doi:10.58777/rfb.v4i2.665

Authors

Roy Prakoso Pancasila University, Jakarta
Chaerani Nisa Pancasila Univesity, Jakarta
Tia Ichwani Pancasila University, Jakarta
Widya Safitri Pancasila University, Jakarta
Siti Dona Dahliantari Pancasila University, Jakarta

DOI:

https://doi.org/10.58777/rfb.v4i2.665

Keywords:

Bank Performance, KBMI 2-3, Mobile Banking Adoption, Panel Data, Two-Way Fixed Effects

Abstract

Digital transformation has reshaped bank-customer interaction, yet the performance effects of mobile banking adoption among Indonesia's mid-tier commercial banks remain untested, as prior studies treat bank size as a broad control rather than isolating this segment. This study examines whether mobile banking adoption affects the performance of mid-tier Indonesian banks from 2012–2024. Its novelty lies in constructing the adoption timing variable from Google Play Store release dates, an approach not previously applied in Indonesia. A two-way fixed effects panel regression is estimated for three outcomes: return on assets, return on equity, and operational efficiency (BOPO), with standard errors clustered by bank. The Post coefficient carries the theoretically expected sign across all outcomes positive for return on assets and return on equity and negative for BOPO but none is statistically significant, as confidence intervals remain wide enough that a null effect cannot be ruled out. Non-performing loans remain the most significant predictor of performance overall. These findings suggest a directionally consistent but statistically inconclusive pattern, indicating that bank management should treat mobile banking investment as a medium-term capability rather than an immediate profitability driver while maintaining credit risk discipline as the dominant performance lever.

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