Impact of Digital Banking Transaction Volume and Mobile Banking Users on Conventional Bank Performance in Indonesia (RIGGS Journal of Artificial Intelligence and Digital Business)

Summary

• Mobile banking transaction volume in Indonesia grew by 39,1% in 2024, while QRIS-based transactions surged by 175,2% year-on-year.p.2
• In 2024, digital banking transaction volume in Indonesia reached a peak of 22 miliar transactions with a total value of 87,87 kuadriliun rupiah.p.3
• The study analyzed 5 large conventional banks in Indonesia (BCA, Bank Mandiri, BRI, BNI, CIMB Niaga) across a 5-year period (2021–2025), yielding 25 panel data observations.p.4
• Descriptive statistics show mobile banking users (X2) ranged from a minimum of 1.60 million to a maximum of 45.90 million, with a mean of 20.61 million.p.5
• The multiple linear regression model yielded a coefficient of determination (R²) of 0.770, indicating 77.0% of performance variation is explained by the model.p.7
• Partial t-test results showed digital transaction volume (X1) had a significance of 0.556, indicating no statistically significant impact on conventional bank net profit.p.6

Key insights

1. Digital banking usage frequency in Indonesia jumped by 158% between 2018 and 2023.p.3
2. Conventional bank net profit (Y) ranged from a minimum of 4.10 trillion to a maximum of 60.64 trillion, with an average of 34.07 trillion.p.5
3. The digital banking transaction volume variable (X1) recorded an average value of 6837.35 across the observed period.p.5
4. Multiple linear regression generated the equation Y = 5.984 + 0.000147X1 + 1.314X2.p.6
5. Multicollinearity tests showed Variance Inflation Factor (VIF) values of 1.340 for both independent variables.p.6
6. The simultaneous F-test yielded a significance value of 0.000, confirming that digital transaction volume and mobile user counts jointly impact bank performance.p.6
7. Each increase of one million active mobile banking users is estimated to increase bank net profit by 1,314 triliun rupiah.p.8