PENGARUH LAYANAN DIGITAL, TINGKAT KOMPETISI, DAN DIVERSIFIKASI PENDAPATAN TERHADAP PROFITABILITAS PERBANKAN

This study analyzes the impact of digital services, level of competition, and income diversification on the profitability of banks listed on the Indonesia Stock Exchange during 2017-2023. In relation to banking profitability, this study touches on changes in the banking business along with technology penetration through the digitalization lifestyle and the COVID-19 phenomenon, the intensity of competition when the presence of digital finance and the rise of mergerization, and the response of banks with business diversification efforts. The results of the study show that digital services through mobile banking & internet banking and income diversification through non-interest income do not significantly affect Return on Assets (ROA), while the Level of Competition using the Lerner Index measurement has a positive and significant effect. This research can be a reference for banks to review factors that can affect business performance and make developments to improve service quality and business performance. This research is also intended for the public as information and education on banking products, services, and business conditions. This research has the potential to be developed and re-examined by considering other factors that can affect profitability.