Branchless Banking, Third-Party Funds, and Profitability Evidence Reference to Banking Sector in Indonesia

Jour of Adv Research in Dynamical & Control Systems, (11)2, 290-299 (2019)

10 Pages Posted: 10 Jul 2019 Last revised: 13 Nov 2019

See all articles by Ketut Tanti Kustina

Ketut Tanti Kustina

University of National Education; Undiknas University

Gusti Ayu Agung Omika Dewi

University of National Education

Gine Das Prena

University of National Education

Wayan Suryasa

ITB STIKOM Bali, Denpasar, Indonesia

Date Written: February 20, 2019

Abstract

This research was conducted on banking companies in Indonesia. The branchless banking services were to determine the effect of the branchless banking application to profits with the volume of third-party funds as an intervening variable or mediation. It was a program of providing banking services through collaboration with other parties (bank agents) and supported by information technology facilities. With Branchless Banking, the transactions were not dependent on the bank offices presence, due to the financial services and activities can be done through bank agents using Electronic Data Capture (EDC) owned by an agent. The research on branchless banking application in Indonesia was rarely conducted, but the implementation was relatively new. The variable used in the present study was Branchless Banking application as an independent variable, the profit changes as the dependent variable and volume of third-party funds as an intervening variable. These variables were obtained through theoretical and empirical studies. Data processing was conducted in using path analysis. The results of the study were branchless banking application did not significantly influence the number of third-party funds of banking companies in Indonesia. The branchless banking application amount of third-party funds have a significant effect on banking company profits in Indonesia. The branchless banking application did not have a significant direct effect on profits but there was branchless banking application which has a significant indirect effect on profit through the volume of third-party funds for the banking companies in Indonesia.

Keywords: branchless banking, electronic data capture, financial inclusion, profits, third party funds

JEL Classification: 45

Suggested Citation

Kustina, Ketut Tanti and Kustina, Ketut Tanti and Dewi, Gusti Ayu Agung Omika and Prena, Gine Das and Suryasa, Wayan, Branchless Banking, Third-Party Funds, and Profitability Evidence Reference to Banking Sector in Indonesia (February 20, 2019). Jour of Adv Research in Dynamical & Control Systems, (11)2, 290-299 (2019), Available at SSRN: https://ssrn.com/abstract=3416428

Ketut Tanti Kustina

University of National Education ( email )

Denpasar, ID

Undiknas University ( email )

Jalan Bedugul No 39 Sidakarya
Denpasar, ID Bali 80224

Gusti Ayu Agung Omika Dewi

University of National Education ( email )

Denpasar, ID

Gine Das Prena

University of National Education ( email )

Denpasar, ID

Wayan Suryasa (Contact Author)

ITB STIKOM Bali, Denpasar, Indonesia ( email )

Jl. Raya Puputan No. 86 Renon - Denpasar
Jl. Raya Kampus Udayana Jimbaran Bali Telp : (0361
Denpasar, ID Bali 80226
Indonesia
361244445 (Phone)
361244445 (Fax)

HOME PAGE: http://www.stikom-bali.ac.id/

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