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Fintech, Banks, And The Covid-19 Pandemic: Evidence From Indonesia

Author

Listed:
  • Militcyano Samuel Sapulette

    (Universitas Padjajaran)

  • Nury Effendi

    (Universitas Padjajaran)

  • Teguh Santoso

    (Universitas Padjajaran)

Abstract

This study investigates the relationship between fintech and banks and how this relationship is affected by the COVID-19 pandemic. We use monthly stock data of all banks consistently listed on the Indonesian Stock Exchange from February 2018 to March 2021. For fintech data, we use a total of four proxies that encompass both lending and borrowing aspects of peer-to-peer lending fintech. To provide robust results, we use five model specifications. Furthermore, we also estimate models using both the fixed effect and the two-step system generalized method of moments estimators. Our estimates indicate a relatively less negative impact of fintech on bigger banks. This relationship is further exemplified during the COVID-19 pandemic period. We argue that these findings have significant implications for the Indonesian financial authorities’ open banking strategy and for the future of the Indonesian financial system in general.

Suggested Citation

  • Militcyano Samuel Sapulette & Nury Effendi & Teguh Santoso, 2021. "Fintech, Banks, And The Covid-19 Pandemic: Evidence From Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 24(4), pages 559-588, December.
    • Handle: RePEc:idn:journl:v:24:y:2021:i:4d:p:559-588
    DOI: https://doi.org/10.21098/bemp.v24i4.1470
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    More about this item

    Keywords

    Fintech; Banks; COVID-19 Pandemic; Stoc returns; Indonesia;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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