Analysis of Financial Technology Implementation and Other Factors on Banking Efficiency in Indonesia

Jihan Eliza (Telkom University)
Fajra Octrina (Telkom University)

Formosa Journal of Science and Technology (FJST)
Vol. 4 No. 7 (2025): July 2025

The rise of Financial Technology (Fintech) has transformed the global financial landscape, including in Indonesia, where commercial banks increasingly integrate digital innovations to enhance efficiency and service reach. This study examines the impact of Fintech—represented by Peer-to-Peer Lending (P2P) and Digital Payment (PAY)—on the efficiency of commercial banks listed on the Indonesia Stock Exchange (IDX) from 2018 to 2023. Employing a comprehensive approach, the study uses Data Envelopment Analysis (DEA) to measure efficiency, panel data regression to assess the influence of variables, and classical assumption tests to validate the model. Control variables such as bank size and market concentration are also considered.