ISSN: 2222-6990
Open access
Many banks continuously evolve and drive growth strategies on technology, such as mobile banking, to increase efficiency and enhance financial performance. However, the effectiveness of these technological initiatives remains a subject of scrutiny. This study examines the financial performance of publicly listed banks in Malaysia before and after adopting a mobile banking application. The sample comprises eight banks, covering a period of twelve quarters before and twelve quarters following the implementation of mobile banking. The evaluation of financial performance focuses on key dimensions of earnings, capital adequacy, asset quality, and liquidity, which are measured with Return on Equity (ROE), Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), and Loan to Deposit Ratio (LDR). The Shapiro-Wilk normality test indicates that both ROE and LDR meet the assumption of normality required for the Paired Sample T-test analysis, while CAR and NPL are analysed using the Wilcoxon Signed Rank Test. The findings indicate a significant difference in LDR and CAR before and following the adoption of mobile banking, while no significant difference is observed for ROE and NPL.
Adhitya, A., & Sembel, H. R. (2020). The impacts of mobile banking technology adoption on the financial performance and stock performance of big Banks in Indonesia. South East Asia Journal of Contemporary Business, Economics and Law, 22(1), 63–73.
Afifah, R. N., & Taufiq, M. (2022). Analisis perbandingan kinerja keuangan bank sebelum dan setelah menerapkan mobile banking pada perbankan yang terdaftar di BEI. Jurnal Ekonomi Pembangunan STIE Muhammadiyah Palopo, 8(1), 84–96.
Anyasi, F. I., & Otubu, P. A. (2009). Mobile phone technology in banking system: Its economic effect. Research Journal of Information Technology, 1(1), 1–5.
Arimi, M., & Mahfud, M. K. (2012). Analisis faktor-faktor yang mempengaruhi profitabilitas perbankan (Studi pada Bank umum yang listed di Bursa Efek Indonesia tahun 2007-2010). Diponegoro Journal of Management, 1(4), 80–91.
Arora, A. (2019). Risk management in banks: A safeguard to innovative banking. UGC Approved Journal No. 40903, 10, 1–7.
Bank Negara Malaysia (2022). Financial sector blueprint 2022-2026. Kuala Lumpur: Bank Negara Malaysia.
B?rbu??-Mi?u, N., Madaleno, M., & Ilie, V. (2019). Analysis of risk factors affecting firms' financial performance—Support for managerial decision-making. Sustainability, 11(18), 4838.
Chen, J., & Rao, V. R. (2023). Evaluating strategies for promoting retail mobile channel using a hidden Markov model. Journal of Retailing, 99(1), 66-84.
Cho, T. Y., & Chen, Y. S. (2021). The impact of financial technology on China's banking industry: An application of the metafrontier cost Malmquist productivity index. The North American Journal of Economics and Finance, 57, 101414.
Cleveland, C. E. (2016). A study on how mobile banking has affected the banking industry: Has mobile banking improved bank performance? Mississippi: University of Mississippi.
Dang, U. (2011). The CAMEL rating system in banking supervision. A case study. Arcada: Arcada University of Applied Sciences.
Dendawijaya, L. (2009). Manajemen perbankan. Jakarta: Ghalia Indonesia.
Dwivedi, Y. K., Ismagilova, E., ... & Wang, Y. (2021). Setting the future of digital and social media marketing research: Perspectives and research propositions. International Journal of Information Management, 59, 102168.
El-Chaarani, H., & El-Abiad, Z. (2018). The impact of technological innovation on bank performance. Journal of Internet Banking and Commerce, 23(3), 1–33.
Fahmi, I. (2020). Analisis kinerja keuangan. Bandung: Penerbit Alfabeta.
Furst, K., Lang, W. W., & Nolle, D. E. (2002). Internet banking. Journal of Financial Services Research, 22, 95-117.
Hajek, P., Olej, V., & Myskova, R. (2014). Forecasting corporate financial performance using sentiment in annual reports for stakeholders' decision-making. Technological and Economic Development of Economy, 20(4), 721–738.
Harelimana, J. B. (2017). Impact of mobile banking on financial performance of Unguka Microfinance Bank Ltd, Rwanda. Global Journal of Management and Business Research: C Finance, 17(4), 1-13.
Ho, J. C., Wu, C. G., Lee, C. S., & Pham, T. T. T. (2020). Factors affecting the behavioral intention to adopt mobile banking: An international comparison. Technology in Society, 63, 101360.
Kasmir. (2003). Manajemen perbankan. Jakarta: PT Raja Grafindo Persada.
Lee, K. S., Lee, H. S. & Kim, S. Y. (2007), Factors influencing the adoption behavior of mobile banking: A South Korean perspective, Journal of Internet Banking and Commerce, 12(2), 1–9.
Loaba, S. (2022). The impact of mobile banking services on saving behavior in West Africa. Global Finance Journal, 53, 100620.
Lu, M. P. (2022). Cashless payments and banking performances: A study of local commercial banks in Malaysia. International Journal of Business and Society, 23(2), 855–876.
Malhotra, P., & Singh, B. (2009). The impact of internet banking on bank's performance: The Indian experience. Eurasian Journal of Business and Economics, 2(4), 43–62.
McCrum-Gardner, E. (2008). Which is the correct statistical test to use? British Journal of Oral and Maxillofacial Surgery, 46(1), 38–41.
Nazir, M. (2017). Metode penelitian. Bogor: Ghalia Indonesia.
Obadia, R., & Kumungunyi, S. (2022). Influence of mobile banking on financial performance of listed tier 1 commercial banks in Kenya. International Research Journal of Economics and Finance, 4(2), 256–267.
Omar, A. & Koori, J. (2022). Mobile banking services and financial performance of Saccos in Mandera County, Kenya. International Journal of Current Aspects in Finance, Banking and Accounting, 4(2), 96–111.
Raksmey, U., Lin, C. Y., & Kakinaka, M. (2022). Macroprudential regulation and financial inclusion: Any difference between developed and developing countries? Research in International Business and Finance, 63, 101759.
Riyadi, S. (2006). Banking assets and liability management. Edisi Ketiga. Jakarta: Fakultas Ekonomi Universitas Indonesia.
Rogers, E. M. (1995). Diffusion of innovations. New York: Simon and Schuster.
Ruxton, G. D., Wilkinson, D. M., & Neuhäuser, M. (2015). Advice on testing the null hypothesis that a sample is drawn from a normal distribution. Animal Behaviour, 107, 249–252.
Salzman, M., Palen, L., & Harper, R. (2001). Mobile communications: Understanding users, adoption, and design. In CHI'01 Extended Abstracts on Human Factors in Computing Systems (pp. 481–482).
Santosa, W. R., Susyanti, J., & Slamet, A. R. (2017). Analisis kinerja keuangan perbankan sebelum dan selama menggunakan SMS banking (studi kasus pada PT Bank Rakyat Indonesia (persero) Tbk.). E-JRM: Elektronik Jurnal Riset Manajemen, 6(1), 186–199.
Schilling, L., & Seuring, S. (2023). Mobile financial service-enabled micro-businesses driving sustainable value creation in emerging markets. Technological Forecasting and Social Change, 192, 122596.
Sevcik, P. (2004). Innovation diffusion. Business Communication Review, 34(9), 8–11.
Shaikh, A. A., Alamoudi, H., Alharthi, M., & Glavee-Geo, R. (2022). Advances in mobile financial services: A review of the literature and future research directions. International Journal of Bank Marketing, 41(1), 1-33.
Siagian, K. A., & Manzilati, A. (2022). Analisis perbandingan kinerja keuangan sebelum dan sesudah penerapan mobile banking. Contemporary Studies in Economic, Finance and Banking, 1(1), 112–127.
Siddik, M. N. A., Sun, G., Kabiraj, S., Shanmugan, J., & Yanjuan, C. (2016). Impacts of e-banking on performance of banks in a developing economy: Empirical evidence from Bangladesh. Journal of Business Economics and Management, 17(6), 1066–1080.
Simamora, H. (2000). Manajemen pemasaran internasional Jilid II. Jakarta: Salemba Empat.
Sudarini, S., & Alloy, S. M. (2005). Penggunaan rasio keuangan dalam memprediksi laba pada masa yang akan datang (studi kasus di perusahaan perbankan yang terdaftar di bursa efek Jakarta). Jurnal Akuntansi dan Keuangan, 15(3), 195–207.
Taouab, O., & Issor, Z. (2019). Firm performance: Definition and measurement models. European Scientific Journal, 15(1), 93–106.
Ulfa, I. R., Djaelani, A. Q., & Salim, M. A. (2017). Analisis perbandingan kinerja keuangan perbankan tiga tahun sebelum dan tiga tahun sesudah penerapan internet banking pada perusahaan perbankan yang terdaftar di Bei. Jurnal Ilmiah Riset Manajemen, 6(6), 145–155.
Wazid, M., Zeadally, S., & Das, A. K. (2019). Mobile banking: Evolution and threats: Malware threats and security solutions. IEEE Consumer Electronics Magazine, 8(2), 56–60.
Winata, I. P., Azib, A., & Sevriana, L. (2021). Analisis perbandingan RASIO Profitabilitas (ROE) dan dana pihak ketiga sebelum dan sesudah menerapkan mobile banking pada Bank BUMN di Indonesia (periode tiga tahun sebelum dan sesudah menerapkan mobile banking). Prosiding Manajemen, 7(1), 58–62.
Wu, L., Yu, D., & Lv, Y. (2023). Digital banking and deposit: Substitution effect of mobile applications on web services. Finance Research Letters, 56, 104138.
(Rahmalia et al., 2024)
Rahmalia, R., Azman, S., & Bajuri, N. H. (2024). Digital Transformation on Financial Performance: Unleashing Corporate Excellence through Mobile Banking Adoption in Malaysia’s Public Listed Banks. International Journal of Academic Research in Business & Social Sciences, 14(1), 1517–1530.
Copyright: © 2024 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode