THE EFFECT OF DIGITAL BANKING ON BANKING FINANCIAL PERFORMANCE

Abstract

This research was conducted to assess the effect of changes in banking from a traditional system to digital banking systems and how it affected the financial performance of banks after these changes occurred. This research uses literature research in its research management, where literature research is research conducted by comparing and collecting previous research and literature studies, then making conclusions from the research results. This research is not specific to just one bank, but to several banks in Indonesia. So after doing literature research, the results of the research are that digital banking has an effect on banking financial performance.This is due to the increasing number of customers who carry out digital banking activities, because it provides convenience and also benefits that provide efficiency and effectiveness for customers in carrying out digital economic activities. This is what drives the financial performance of banks also increases. The most significant financial performance can be seen through Return on Assets which has a significant effect due to digital banking.