Relation of Digital Banking Growth to The Performance of Conventional Bank
Abstract
This research discusses the relationship between the digital banking industry's growth and conventional banking performance in France. This study aims to discover if there is any influence that the digital banking industry growth has on conventional banks. This study fills the gap of the previous research that has been conducted which is to investigate the event over a longer period but still limited to measurement variables used and the 16 years’ time frame. The methodology utilized for this research is quantitative using the linear regression method which resulted in the discovery that the digital banking penetration rate, the measurement used for the growth of the digital banking sector, has a relatively weak positive relation with France’s conventional bank's performance while it has a moderately negative relationship when year is included to control the regression. Conventional banks should focus on their digital transformation to keep up with the competition. To collect more comprehensive findings, further research should include more variables as the key financial measurement over a long period.
References
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Sibanda, W., Ndiweni, E., Boulkeroua, M., Echchabi, A., & Ndlovu, T. (2020). Digital technology disruption on bank business models. International Journal of Business Performance Management, 21(1/2), 184. https://doi.org/10.1504/ijbpm.2020.106121
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Beers, B. (2021, May 29). What Does a High Capital Adequacy Ratio Indicate? Investopedia. https://www.investopedia.com/ask/answers/040115/what-does-it-mean-when-company-has-high-capital-adequacy-ratio.asp#:~:text=The%20capital%20adequacy%20ratio%20(CAR)%20is%20a%20measure%20of%20how,at%20risk%20for%20becoming%20insolvent
Bikker, J., & Bos, J. W. (2008). Bank Performance: A Theoretical and Empirical Framework for the Analysis of Profitability, Competition and Efficiency. Routledge.
BNP Paribas. (2021). UNIVERSAL REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT 2021 BNP Paribas. In Invest BNP Paribas. Retrieved February 28, 2023, from https://invest.bnpparibas/en/document/universal-registration-document-and-annual-financial-report-2021
Broby, D. (2021). Financial technology and the future of banking. Financial Innovation, 7(1). https://doi.org/10.1186/s40854-021-00264-y
Bujang, M. A., & Adnan, T. H. (2016). Requirements for Minimum Sample Size for Sensitivity and Specificity Analysis. Journal of Clinical and Diagnostic Research. https://doi.org/10.7860/jcdr/2016/18129.8744
Burky, D. A., & Suriawinata, I. S. (2020). ANALYSIS OF THE EFFECT OF RETURN ON ASSET, DEBT TO EQUITY RATIO, AND TOTAL ASSET TURNOVER ON SHARE RETURN. Sekolah Tinggi Ilmu Ekonomi Indonesia.
Crédit Mutuel. (n.d.). 2021 Universal Registration Document INCLUDING THE ANNUAL FINANCIAL REPORT OF BFCM. In www.bfcm.creditmutuel.fr. Retrieved February 27, 2023, from https://www.bfcm.creditmutuel.fr/partage/fr/CC/BFCM/telechargements/information-financiere/annual_reports/2021_Universal_Registration_Document.pdf
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Fernando, J. (2023, April 5). Return on Equity (ROE) Calculation and What It Means. Investopedia. https://www.investopedia.com/terms/r/returnonequity.asp
FIRM VALUE. International Journal of Economics and Financial Issues, 9(5), 50–54. https://doi.org/10.32479/ijefi.8595
Galvin, J., Han, F., Hynes, S., Qu, J., Rajgopal, K., & Shek, A. (2018, December 17). Synergy and disruption: Ten trends shaping fintech. McKinsey & Company. Retrieved from https://www.mckinsey.com/industries/financial-services/our-insights/synergy-and-disruption-ten-trends-shaping-fintech
Groupe BPCE. (2021). 2021 UNIVERSAL REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT2021 BPCE. In Groupe BPCE. Retrieved February 25, 2023, from https://groupebpce.com/en/content/download/29858/file/BPCE2021_URD_EN.pdf
Hargrave, M. (2022, June 14). Return on Assets (ROA): Formula and 'Good' ROA Defined. Investopedia. https://www.investopedia.com/terms/r/returnonassets.asp
Husna, A., & Satria, I. (2019c). EFFECTS OF RETURN ON ASSET, DEBT TO ASSET RATIO, CURRENT RATIO, FIRM SIZE, AND DIVIDEND PAYOUT RATIO ON FIRM VALUE. International Journal of Economics and Financial Issues, 9(5), 50–54. https://doi.org/10.32479/ijefi.8595
KOSKOSAS, I. (2011). THE PROS AND CONS OF INTERNET BANKING: A SHORT REVIEW. University of Western Macedonia.
Kvålseth, T. O. (2018). Relationship between concentration ratio and Herfindahl-Hirschman index: A re-examination based on majorization theory. Heliyon, 4(10), e00846. https://doi.org/10.1016/j.heliyon.2018.e008464
LE GROUPE LA POSTE. (2022). LE GROUPE LA POSTE RESULTS FOR 2021 Recovery in results and major strategic steps. In Actunews. Retrieved February 25, 2023, from https://www.actusnews.com/documents_communiques/ACTUS-0-73355-la-poste-groupe_2021-fy-results_en.pdf
Polit, D.F., & Beck, C.T. (2010). Generalization in quantitative and qualitative research: Myths and strategies. International Journal of Nursing Studies, 47(11), 1451-1458. https://doi.org/10.1016/j.ijnurstu.2010.06.004.
Ryu, H. S. (2018). What makes users willing or hesitant to use Fintech?: the moderating effect of user type. Industrial Management &Amp; Data Systems, 118(3), 541–569. https://doi.org/10.1108/imds-07-2017-0325
Temelkov, Z. (2020). DIFFERENCES BETWEEN TRADITIONAL BANK MODEL AND FINTECH BASED DIGITAL BANK AND NEOBANKS MODELS. SMART IDEAS – WISE DECISIONS, 74, 2367–5721.
Sibanda, W., Ndiweni, E., Boulkeroua, M., Echchabi, A., & Ndlovu, T. (2020). Digital technology disruption on bank business models. International Journal of Business Performance Management, 21(1/2), 184. https://doi.org/10.1504/ijbpm.2020.106121
Statista. (2022, May 23). Market capitalization of French banks 2020. https://www.statista.com/statistics/1097003/market-capitalization-of-banks-in-france/
Published
2023-09-30
How to Cite
AKBAR ADIVA, Aufa.
Relation of Digital Banking Growth to The Performance of Conventional Bank.
Asian Journal of Research in Business and Management, [S.l.], v. 5, n. 3, p. 172-182, sep. 2023.
Available at: <https://myjms.mohe.gov.my/index.php/ajrbm/article/view/24224>. Date accessed: 02 dec. 2023.
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Articles
