Research of Finance and Banking

The Impact of Security, Convenience, and Digital Promotion on Gen Z’s Islamic Banking Interest

2026-06-30T10:54:14+07:00

This study aims to analyze the influence of security, convenience, and digital promotion on Gen Z's interest in becoming customers of Bank Syariah Indonesia (BSI). The rapid development of digital banking has intensified competition among financial institutions, making digital service quality and effective marketing strategies essential for attracting young customers. Previous studies have mainly examined security, convenience, and digital promotion separately or have focused on existing users. This study addresses this gap by integrating these three factors to explain Generation Z's interest in becoming BSI customers. The study employed a quantitative associative approach. The population consisted of Gen Z in Surabaya who had not yet used BSI services. Using purposive sampling, data were collected from 168 respondents through an online questionnaire and analyzed using multiple linear regression. The results show that security, convenience, and digital promotion have a positive and significant influence on Gen Z's interest in becoming BSI customers. Security is the strongest factor in building trust, while convenience improves application usability. Digital promotion also increases Gen Z's interest and awareness of Islamic banking services. These findings provide strategic insights to help BSI improve its digital services and marketing strategies for Generation Z.

A Conceptual Framework for Value Creation through Sustainability Reporting and Intellectual Capital

2026-06-18T14:46:19+07:00

The growing importance of sustainability and knowledge-based resources has increased interest in understanding how organizations create value in dynamic business environments. Previous studies have reported positive relationships between sustainability reporting, intellectual capital, and firm value, but these constructs have largely been examined independently, providing limited explanation of how sustainability-related and knowledge-based resources interact through innovation. This study addresses this gap by proposing a conceptual framework that positions innovation performance as the strategic mechanism linking sustainability reporting and intellectual capital to organizational value creation. Using a theoretical research approach, the study integrates Stakeholder Theory, Legitimacy Theory, the Resource-Based View, and Dynamic Capabilities Theory through a structured literature review. The study’s conceptual novelty lies in presenting a theoretically integrated value-creation framework explaining how sustainability reporting and intellectual capital jointly enhance sustainable organizational value through innovation performance. By moving beyond the direct relationship perspective adopted in prior research, the proposed framework offers a mechanism-based explanation of how sustainability-related and knowledge-based resources are transformed into innovation capabilities that ultimately generate sustainable organizational value, providing directions for future empirical research and managerial practice.

Do Sustainability Finance Regulations Improve Bank Profitability? Evidence From Indonesian KBMI 2 Banks

2026-08-03T10:28:44+07:00

Previous studies have mainly examined the link between voluntary sustainability reporting and corporate financial performance, offering limited evidence on mandatory sustainable finance regulations, especially among Indonesian KBMI 2 Banks. This study addresses this gap by assessing the effect of Financial Services Authority Regulation (POJK) No. 51/POJK.03/2017 on KBMI 2 Banks’ financial performance using panel data. It applies a quantitative explanatory design to data from eight KBMI 2 Banks during 2016–2025. Return on Assets (ROA) measures profitability, while a policy dummy captures implementation of POJK No. 51/POJK.03/2017. Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), and the Operating Expenses-to-Operating Income Ratio (BOPO) are control variables. Panel regression results show that, before the regulation, CAR positively affected ROA and BOPO had a significant negative effect. After implementation, only BOPO remained significant; CAR, NPL, and the policy dummy were insignificant. Thus, the regulation has not directly improved short-term profitability. This study provides an early policy evaluation focused on KBMI 2 Banks, confirms operational efficiency as the main profitability driver, and offers insights for banks and regulators developing more effective sustainable-finance implementation strategies. It also underscores the need for longer implementation periods and supportive supervisory measures across Indonesia.

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

2026-08-22T17:49:37+07:00

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.