The Impact of Fintech on the Operational Efficiency of Banks in Indonesia

Abstract

The development of financial technology (fintech) has had a significant impact on the transformation of the banking sector, particularly in terms of operational efficiency. This study aims to analyze the influence of fintech, especially mobile banking and digital transactions, on the operational efficiency of banks in Indonesia. The research method employed is a qualitative approach using a literature review, focusing on scholarly publications from last five years. The findings reveal that fintech adoption reduces operating costs, accelerates transactions, and enhances customer satisfaction and loyalty. The operational cost-to-operating income ratio (Biaya Operasional terhadap Pendapatan Operasional/BOPO) has improved alongside the digitalization of banking services. Nevertheless, several challenges remain, including cybersecurity risks, gaps in digital literacy, and the need for adaptive regulations. The role of regulators such as the Financial Services Authority (Otoritas Jasa Keuangan/OJK) and Bank Indonesia (BI) is crucial in creating a secure and sustainable ecosystem. This study concludes that fintech acts as a key catalyst in improving banking efficiency in Indonesia, although long-term success largely depends on risk management and strategic technological investments.