Banking Financial Performance Before and After Financial Technology Era

Technological development is a characteristic of the times. The role and benefits of technology have an impact on almost every aspect of life. This rapid technological advancement affects the activities of the people of Indonesia and Malaysia in several fields, one of which is the use of digital financial services or so-called financial technology. This research aims to compare and contrast the pre- and post-fintech financial performance of banking organizations in Malaysia and Indonesia in order to draw conclusions about the impact of fintech on these economies. A quantitative approach is taken in the research. Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), Operating Costs per Operating Income (BOPO), Return on Assets (ROA), and Loan to Deposit Ratio (LDR) are some of the metrics included in this analysis. The sample is grouped into conventional commercial banks listed on the Indonesian stock exchange and the Malaysian stock exchange. Wilcoxon signed-rank test and paired sample t-test are the methods utilized for analysis. The results showed that in the banking sector in Indonesia, there were differences based on CAR and NPL variables. While in the banking sector in Malaysia, there are differences based on CAR and BOPO variables.