Indonesian Banking Review is a prominent academic journal dedicated to advancing the understanding of banking and finance within the Indonesian context. Published by the Fakultas Sosial Ekonomi & Humaniora, Universitas Nahdlatul Ulama (UNU) Purwokerto in collabration with the Be Actual Research Institute (BARI), the journal serves as a crucial platform for the dissemination of research and scholarly insights aimed at improving the banking sector and financial systems in Indonesia and beyond. The journal covers a wide range of topics, including banking regulation, financial technology (fintech), risk management, financial inclusion, banking policies, corporate governance, and economic development. As a double-blind peer-reviewed journal, it upholds rigorous academic standards, ensuring that all submitted manuscripts are carefully evaluated by experts in the field. Published biannually, in January–June and July–December, Indonesian Banking Review highlights the latest research and developments in the banking and financial sectors. Through the publication of original research articles, case studies, and reviews, the journal aims to contribute to the enhancement of Indonesia’s banking systems, fostering an environment of continuous improvement and innovation. The journal welcomes contributions from researchers, academicians, and practitioners working in banking, finance, and related fields. We encourage submissions that explore emerging trends, challenges, and opportunities in the banking sector. Authors are required to adhere to the journal's submission guidelines, and manuscripts that do not meet the formatting and style requirements will be returned without review. Only those manuscripts that align with the journal's standards will be considered for further editorial evaluation and peer review. Indonesian Banking Review is committed to promoting academic discourse and facilitating the exchange of ideas that contribute to the advancement of the banking sector. By providing a scholarly platform for researchers and practitioners, the journal strives to make a meaningful impact on the development of Indonesia's financial landscape.
Fakultas Sosial Ekonomi & Humaniora, Universitas Nahdlatul Ulama (UNU) Purwokerto
E-Wallet Integration with Banking Services: Implications for Financial Inclusion
The rapid development of financial technology has significantly transformed the global financial landscape, particularly through the emergence of electronic wallets and digital payment systems. The integration of electronic wallets with banking services has become an important mechanism for expanding financial service access and improving financial inclusion, especially in developing economies. This study aims to examine the role of electronic wallet integration with banking services in enhancing financial inclusion. The study employs a systematic literature review method to analyze peer reviewed academic publications discussing digital payments, financial technology, and financial inclusion. The findings indicate that integrated digital financial services improve accessibility, efficiency, and convenience in financial transactions, allowing individuals to perform payments, transfers, and other financial activities without relying on traditional banking infrastructure. In addition, electronic wallet integration supports financial participation among underserved populations and promotes economic empowerment. However, several challenges remain, including digital literacy limitations, cybersecurity risks, and regulatory constraints. Strengthening digital infrastructure, supportive regulations, and financial education is essential to maximize the benefits of integrated digital financial services.
Financial Inclusion Strategies Through Branchless Banking in Indonesia
Financial inclusion plays a crucial role in supporting sustainable economic development, particularly in developing countries where access to formal financial services remains unequal. In Indonesia, disparities in bank account ownership and credit access continue to exist across regions and socioeconomic groups. Branchless banking has emerged as an innovative strategy to address these challenges by providing banking services outside traditional bank branches through digital platforms, mobile technology, and authorized agents. This study aims to examine the role of branchless banking in expanding financial inclusion in Indonesia. The research applies a systematic literature review method to analyze previous academic studies related to financial inclusion, branchless banking, and digital financial services. The findings indicate that branchless banking significantly improves financial access by extending financial services to underserved populations, particularly in rural and remote areas. In addition, the integration of digital financial services enhances efficiency, reduces transaction costs, and encourages greater participation in formal financial systems. Overall, branchless banking plays an important role in strengthening financial inclusion and supporting inclusive economic development.
Instant Payment Adoption and Merchant Credit Access in Indonesia: Evidence from QRIS Expansion
This article examines whether Indonesia’s rapid diffusion of instant payments, proxied by QRIS expansion, can improve merchant credit access and through which channels. Using a systematic literature review of peer-reviewed journal studies, we synthesize evidence on QR-based adoption, merchant persistence, and how transaction data supports MSME financing. The findings converge on four drivers of sustained use: perceived usefulness, ease of use, trust, and facilitating conditions. Interoperability and lower cash- handling and reconciliation frictions strengthen merchant participation and encourage regular, traceable payment flows. Direct evidence on credit outcomes is thinner, but points to a data pathway: frequent and continuous payment trails can reduce information asymmetry and enable cashflow-based assessment, especially for merchants with high transaction intensity and adequate digital readiness. We frame these patterns as an ecosystem link from payment standardization to credit inclusion, emphasizing usage quality and continuity over adoption counts. Overall, QRIS is most credit-relevant when transaction histories are dense, reliable, and responsibly integrated into lending design.
Digital Bank Entry and Competitive Dynamics in Indonesia’s Retail Banking Market
This article examines how digital bank entry reshapes competitive dynamics in Indonesia’s retail banking market and under what conditions entry strengthens contestability versus preserving market power. Using a systematic literature review of peer-reviewed studies, the article consolidates evidence on how digital-only banks, incumbent digital subsidiaries, and fintech-led substitution affect rivalry, pricing conduct, and market structure. The reviewed findings indicate that digitalization tends to intensify competition in acquisition-heavy segments where onboarding is frictionless and price comparison is easier, yet market power can persist where informational switching costs, behavioral inertia, and ecosystem lock-in remain. The discussion organizes results around three lenses: how “entry” is operationalized, the mechanisms linking entry to rivalry (switching costs, network effects, and operating- model efficiency), and Indonesia-specific institutional conditions such as governance expectations and interoperability. Overall, the synthesis suggests that digital entry reorganizes competition into contested and less contested pockets rather than generating uniform price competition, highlighting the central role of interoperability and data portability in shaping outcomes.
The Influence of OJK Supervisory Interventions on Risk-Taking Behavior in Indonesian Banks
This article examines how OJK supervisory interventions influence Indonesian banks’ risk-taking behavior and why empirical findings on supervisory effectiveness often differ across studies and risk measures. Using a systematic literature review, the study consolidates peer-reviewed evidence on supervisory tools that shape bank incentives, including governance-oriented supervision, capital-related constraints, and crisis-period supervisory relief that can affect risk recognition and portfolio management. The review finds that supervisory interventions are more consistently associated with lower risk-taking when they are credible, targeted, and linked to observable remedial actions that change internal controls and decision-making, while effects are less predictable when interventions are captured only through broad prudential proxies or when risk migrates to less visible margins. The discussion organizes results by intervention channel, risk measurement approach, and moderating bank characteristics, highlighting the roles of capitalization, governance capacity, and market discipline. Overall, the synthesis concludes that supervisory effectiveness in Indonesia is conditional, measurement- sensitive, and intertwined with the broader policy environment.
Indonesia’s Monetary Policy in Controlling Inflation and Maintaining Stability
Monetary Policy is a central bank’s primary instrument in maintaining currency stability, controlling Inflation, and creating conditions that support sustainable economic growth. In Indonesia, Bank Indonesia applies the Inflation Targeting Framework (ITF), which emphasizes price stability by utilizing the policy Interest Rate, open market operations, and Macroprudential instruments. Global developments, such as exchange rate volatility and changes in international Interest Rates, present significant challenges that influence the effectiveness of domestic policy implementation. This study employs a literature review method to analyze the role, dynamics, and adaptation of Indonesia’s Monetary Policy in responding to external pressures and maintaining Financial Stability. The findings reveal that policy flexibility, central bank credibility, the integration of Sharia-based instruments, and the development of Central Bank Digital Currency (CBDC) are crucial elements in strengthening the monetary foundation. Therefore, Indonesia’s Monetary Policy is not merely technical in nature but also strategic in addressing global challenges, while simultaneously supporting Financial Inclusion and long-term economic sustainability.
Financial Inclusion and Monetary Stability through CBDC and Fintech
Central banks play a crucial role in maintaining monetary stability and the soundness of the financial system through monetary policy instruments, supervision, and the management of liquidity and payment systems. The development of financial technology (fintech) and the emergence of Central Bank Digital Currency (CBDC) present both new opportunities and challenges in the realms of financial stability and financial inclusion. CBDC promises greater transaction efficiency, transparency, and expanded access to financial services, yet it also carries potential risks to monetary stability, the role of commercial banks, and data security. This literature study examines the implications of CBDC and fintech for monetary policy transmission, the transformation of the financial system, and regulatory strategies. Using a literature review methodology, the study finds that CBDC has the potential to enhance financial inclusion and improve the effectiveness of monetary policy, although it requires strong digital infrastructure and an adaptive regulatory framework. Therefore, the implementation of CBDC must be carried out carefully to maximize its benefits without compromising the stability of the financial system.
The Transformation of Conventional Banking and the Impact of Fintech on Customer Loyalty
Conventional banking in Indonesia remains a fundamental pillar of the national financial system despite facing rapid disruption from financial technology (fintech). Digitalization, increasing smartphone penetration, and the growing demand for financial inclusion have accelerated the transformation of the banking industry landscape. The presence of fintech provides faster and more convenient access to financial services, yet at the same time poses significant challenges for conventional banks in retaining customer loyalty. This study examines the relationship between fintech development, the competitiveness of conventional banking, and customer loyalty using the Systematic Literature Review (SLR) method on publications. The findings reveal that customer loyalty continues to be influenced by service quality, trust, and the additional value delivered by banks, even though fintech offers innovative alternatives. Therefore, conventional banks must transform through digitalization, collaboration with fintech, and service innovation to maintain customer loyalty amid competition. These findings provide strategic insights for the national banking industry in managing change and ensuring sustainable operations.
Economic Globalization and Systemic Risks to Indonesian Banking Stability
Economic globalization has significantly increased international market integration through trade, investment, and cross-border capital flows. This phenomenon has facilitated the entry of Multinational Corporations (MNCs) into developing countries such as Indonesia, strengthening capital inflows and technology transfer. However, it also presents challenges, including inequality and intense competition with domestic firms. The Indonesian banking sector, as the backbone of financial intermediation, exhibits notable vulnerability to external shocks, particularly during the COVID-19 pandemic, which amplified credit risks and pressured profitability. Systemic banking risk demonstrates a two-way relationship with macroeconomic conditions: economic downturns increase the potential for non-performing loans, while banking instability can further weaken the economy through credit freezes and asset price declines. The role of foreign investors is ambivalent; they enhance stability by providing capital and expertise, yet pose a significant risk of sudden capital outflows. This study employs a literature review method to examine globalization dynamics, the role of MNCs, systemic risk, and foreign investors in safeguarding the resilience of Indonesian banking.
Credit Risk and Financial Stability in Supporting Local Economic Growth
Bank Perkreditan Rakyat (BPR) plays a strategic role in strengthening Indonesia’s financial system, particularly through its intermediation function for the Micro, Small, and Medium Enterprises (MSMEs) sector and local economies. BPR contributes significantly to enhancing financial inclusion, promoting economic diversification, and improving resilience against regional shocks. Nevertheless, the high level of credit risk remains a major challenge that differentiates BPR from commercial banks. Uncontrolled credit risk has the potential to weaken capital stability, disrupt intermediation functions, and trigger a broader crisis of confidence within the financial sector. Therefore, compliance with the Legal Lending Limit (Batas Maksimum Pemberian Kredit/BMPK) emerges as a crucial regulatory instrument to safeguard the financial health of BPR, prevent excessive credit concentration, and ensure long-term operational sustainability. This literature-based study aims to examine the role of BPR in maintaining financial stability, the implications of credit risk, and the importance of BMPK implementation. Findings indicate that strengthening risk management, corporate governance, and regulatory oversight is essential for ensuring the sustainability of BPR in supporting Indonesia’s economic growth.
Financial Literacy and Financial Behavior of Indonesians in the Digital Era
Financial literacy has become a crucial aspect in facing economic dynamics in the digital era. Advances in financial technology bring both opportunities and risks that require individuals to possess adequate knowledge, skills, and prudent financial behavior. According to the Financial Services Authority (Otoritas Jasa Keuangan/OJK), financial literacy encompasses understanding financial products, managing money, and the ability to avoid illegal investments to achieve financial well-being. This study employs a Systematic Literature Review (SLR) method by examining various studies related to financial literacy, financial behavior, and the role of fintech in Indonesia. The findings indicate that good financial literacy improves decision-making, encourages saving, promotes proper investment practices, and reduces potential risks related to debt and digital fraud. However, the financial literacy level of Indonesian society remains relatively low, as indicated by the 2022 OJK survey, which only reached 49.68%. Therefore, it is necessary to implement inclusive, technology-based financial education strategies to enhance the quality of financial management among the public in the digital era.
Green Finance and Sustainable Banking Towards a Green Economy in Indonesia
Green finance and sustainable banking are increasingly becoming central pillars in the global financial system, particularly in supporting the transition toward sustainable development. This article examines global trends, the role of banking institutions, and the implementation of sustainable finance policies in Indonesia, with a specific focus on the practices of major banks such as Mandiri, BRI, and BNI. Although there has been a growing interest in green financial instruments, the proportion of green credit portfolios in Indonesia remains relatively small, constrained by limited fiscal incentives, the high cost of certification, and the low demand from business actors. This library research highlights the importance of integrating Environmental, Social, and Governance (ESG) principles, expanding innovative products such as green bonds and blended finance, and strengthening government regulatory support to enhance the green finance ecosystem. By combining global insights with local realities, the study underscores that the success of green banking in Indonesia critically depends on multi-stakeholder collaboration, enhanced financial literacy for businesses, and the proactive role of banks in mobilizing capital toward environmentally friendly projects.
Machine Learning Model for Small Bank Bankruptcy Prediction
The bankruptcy of small banks can create serious disruptions to overall financial stability, especially in developing economies where the financial system is heavily supported by medium- and small-scale banking institutions. Unlike large commercial banks that often have diversified portfolios and greater access to capital buffers, small banks are typically more vulnerable to liquidity shocks, credit risks, and external market fluctuations. In this regard, advances in machine learning provide an opportunity to construct more robust prediction models that outperform traditional approaches, such as financial ratio analysis and logistic regression. This study explores various machine learning models, including Support Vector Machine, Random Forest, and Neural Network, while highlighting their strengths, weaknesses, and practical relevance in the context of small banks. By employing a Systematic Literature Review (SLR) method, the research systematically evaluates studies published and focus on bankruptcy prediction within the banking sector. The findings indicate that ensemble learning and deep learning models achieve higher predictive accuracy, though challenges in interpretability and transparency remain crucial for regulators and practitioners.
Banking Resilience in Indonesia: Financial Indicators and Regulatory Policies
This study aims to evaluate the resilience of Indonesia’s banking sector by focusing on four key indicators: Non-Performing Loans (NPL), Capital Adequacy Ratio (CAR), profitability, and liquidity. A literature review method was employed, analyzing 17 academic articles published last five years alongside regulatory documents from the Financial Services Authority (Otoritas Jasa Keuangan/OJK) and Bank Indonesia. The findings reveal that although the pandemic increased pressure on the real and banking sectors, the industry remained relatively resilient. NPL was successfully controlled through credit restructuring policies, CAR stayed well above the minimum threshold, liquidity was supported by macroprudential measures, and profitability, though reduced, remained positive. However, resilience varied across bank types: Islamic banks were more stable in maintaining profitability, conventional banks were stronger in capital adequacy, while rural banks (BPR) were more vulnerable. These findings highlight the need for differentiated policy approaches tailored to each bank type. The study underscores the importance of long-term strategies such as enhancing efficiency, strengthening risk management, consolidating BPR, and accelerating banking digitalization to reinforce the stability of Indonesia’s financial sector.
The Strategic Role of Bank Indonesia in the Payment System in the Digital Era
This study examines the strategic role of Bank Indonesia (BI) in strengthening the national payment system in the context of rapid digital transformation. BI’s mandate extends beyond the technical administration of payment infrastructures to include safeguarding monetary stability, ensuring the soundness of the banking sector, and supporting overall economic resilience. The research highlights how innovations such as Quick Response Indonesian Standard (QRIS), and BI-FAST have significantly improved transaction efficiency, reduced costs, accelerated settlement processes, and expanded financial inclusion across different segments of society, Particularly MSMEs. These policies have created a more accessible and integrated financial ecosystem that contributes directly to the growth of Indonesia’s digital economy. Nevertheless, the findings also reveal major challenges that accompany this transformation. These include low levels of financial literacy in large portions of the population, heightened cybersecurity risks associated with increasing volumes of electronic transactions, and regulatory gaps that struggle to keep pace with the rapid innovation of financial technology (fintech). Using a qualitative descriptive approach, the study concludes that BI plays a central role in ensuring that the payment system not only facilitates economic activities but also serves as a strategic foundation for monetary stability.
Mobile Banking Data Security in Indonesia: Challenges, Solutions, and Policy Implications
The advancement of mobile banking in the era of the Fourth Industrial Revolution has become a major driver of digital transformation in Indonesia’s financial sector. This service not only improves transactional efficiency but also plays a vital role in promoting financial inclusion by reaching communities previously excluded from conventional banking. However, rapid growth has also introduced critical challenges regarding data security. This study employs a qualitative approach through literature review to examine global trends, national conditions, key threats, and available solutions. The findings reveal that phishing, malware, hacking, and data breaches remain dominant threats in mobile banking ecosystems. Meanwhile, technical solutions such as encryption, multi-factor authentication, biometrics, as well as artificial intelligence and blockchain technologies have proven effective, yet their success highly depends on users’ digital literacy. Furthermore, national regulations lag behind international standards, requiring more proactive policymaking and continuous education. This research emphasizes that a holistic approach integrating technology, digital literacy, and adaptive regulation is essential to safeguard public trust in mobile banking.
Fintech and Financial Inclusion: Opportunities, Challenges, and Future Direction
This study presents a systematic literature review on the role of financial technology (fintech) in expanding financial inclusion across global, regional, and national contexts. A thematic analysis of selected articles identifies four major themes: fintech’s contribution to financial access, its support for micro, small, and medium-sized enterprises (MSMEs) and vulnerable communities, implementation challenges, and future directions for research and policy. The findings reveal that fintech, through digital payments, mobile banking, e-wallets, and peer-to-peer (P2P) lending, has significantly improved account ownership and participation in the formal financial system. Beyond its economic function, fintech also demonstrates a strong social dimension by providing financing opportunities for small businesses and sustaining financial access for low-income and rural communities, particularly during the COVID-19 pandemic. Despite these positive impacts, substantial challenges remain, including uneven digital infrastructure, low levels of financial literacy, regulatory gaps, and concerns about consumer protection and data security. Future research and policy should emphasize integrating emerging technologies such as artificial intelligence and blockchain, strengthening digital literacy programs, and designing adaptive regulations that balance innovation with consumer trust.
Public Relations Influencers and Mobile Banking Adoption in Islamic Banking
The digital transformation has brought significant changes to the banking industry, including Islamic banking, which is increasingly adopting mobile banking services. This study aims to analyze the role of influencer-based Public Relations (PR) in influencing customer behavior towards the adoption of mobile banking at Bank Syariah Indonesia (BSI), as well as its impact on customer image and loyalty. The research employed a qualitative descriptive method with a literature review approach, drawing from recent academic sources. The findings reveal that influencers serve a dual role as both promoters and public educators. They not only raise public awareness of digital services but also help address barriers such as low digital literacy and security concerns. Influencer-based PR strengthens the image of Islamic banks as modern and ethical institutions, while enhancing customer loyalty through engagement and positive word of mouth. However, its effectiveness highly depends on influencer credibility, content relevance, and alignment with Islamic values.
The Role of Artificial Intelligence in Banking Service Transformation and Business Strategy
The digital transformation of the Fourth Industrial Revolution has driven banks to adopt Artificial Intelligence (AI) as a key strategy to enhance efficiency, security, and competitiveness. This study aims to analyze the application of AI in the banking sector through a systematic literature review of some academic articles published last five years. The findings reveal that AI plays a pivotal role in five areas: customer service, fraud detection, robo-advisors, decision support systems, and accounting information systems. AI-powered chatbots improve customer satisfaction and loyalty, while machine learning proves effective in detecting fraud in real time. Robo-advisors expand access to investment opportunities, although they still face trust-related barriers. AI-based decision support accelerates credit analysis, and integration into accounting systems enhances reporting accuracy and transparency. AI is not merely an operational tool but a holistic business strategy. Nevertheless, ethical issues, data protection, and customer resistance remain challenges that must be addressed to fully optimize the long-term benefits of AI in banking.
Risk Management and Good Corporate Governance in Strengthening Indonesian Banking Performance
This study aims to analyze the impact of risk management practices and Good Corporate Governance (GCG) implementation on the performance of the banking sector in Indonesia. The research background is rooted in the strategic role of banks in supporting national economic development while simultaneously facing various challenges such as credit, market, liquidity, operational, and cyber risks in the era of digitalization. The research method employed is a library study complemented by secondary data obtained from the financial statements of banks listed on the Indonesia Stock Exchange. The findings reveal that risk management significantly contributes to maintaining asset quality, reducing the level of Non-Performing Loans (NPLs), and improving financial performance efficiency. Meanwhile, GCG implementation strengthens transparency, accountability, and social legitimacy, although its effect on financial performance is not consistently significant across all banks. The differing results suggest that GCG practices in some institutions remain largely formalities with limited impact on performance. This study concludes that integrating risk management and GCG is a crucial strategy to strengthen the competitiveness of Indonesian banking amid global economic uncertainties.
Transforming Indonesia's Digital Banking through Open Banking and Fintech
Open Banking has emerged as a new paradigm in the global financial industry, enabling banks to securely share customer data with third parties through Application Programming Interface (API) based on the explicit consent of customers. In Indonesia, the adoption of Open Banking has become increasingly relevant in line with regulatory initiatives from Bank Indonesia and the Financial Services Authority, as well as the rapid growth of collaboration between major banks, fintech companies, and e-commerce platforms. This study employs a Systematic Literature Review (SLR) method to comprehensively analyze the implementation of Open Banking in Indonesia, focusing on the dimensions of regulation, innovation, collaboration, and challenges related to consumer data protection. The findings reveal that Open API plays a central role in building a more efficient, integrated, and competitive financial ecosystem. However, the main challenges include the urgent need for API standardization, ensuring strong data security, and improving the readiness of digital infrastructure. The study concludes that the successful implementation of Open Banking in Indonesia requires synergy between regulatory frameworks, technology adoption, and consumer awareness regarding the tangible benefits of digital financial services.
The Role of Fintech in Driving Banking Transformation and Digital Financial Inclusion
Fintech (Financial Technology) has reshaped the global financial ecosystem by introducing a wide range of technology-based services that surpass traditional banking in terms of convenience, efficiency, and accessibility. Through innovations such as digital payments, peer-to-peer (P2P) lending, mobile-based platforms, and artificial intelligence-driven asset management, fintech has opened new pathways to strengthen financial inclusion, particularly among low-income groups, micro-enterprises, and communities in remote areas that were previously underserved by conventional banking institutions. This study adopts a library research method to analyze the interplay between fintech and banking in advancing financial inclusion and to evaluate its broader consequences for financial stability, efficiency, and long-term sustainability. Findings from recent literature suggest that fintech not only bridges the service gaps left by traditional banks but also expands credit access, enhances transactional speed, lowers costs, and fosters inclusive economic growth. However, its rapid growth simultaneously introduces challenges such as regulatory uncertainty, consumer protection issues, data security risks, and the threat of digital exclusion for those lacking internet access or technological literacy.
The Role of Banking in Supporting SDGs through Inclusive and Sustainable Finance
Banking plays a crucial and strategic role in promoting both economic and social development by mobilizing and allocating funds for various purposes, including business capital, investment, and consumption. The relevance of banking to the achievement of the Sustainable Development Goals (SDGs) continues to grow, particularly with the increasing adoption of sustainable finance practices that emphasize environmental, social, and governance (ESG) aspects. Banks can contribute significantly to SDGs through multiple approaches, such as financing sustainable projects, developing innovative financial products, promoting financial inclusion, and implementing responsible banking principles that prioritize societal welfare. Furthermore, strategies focusing on Micro, Small, and Medium Enterprises (MSMEs), productive low-income communities, and the enhancement of digital ecosystems serve as essential pillars to support equitable wealth distribution. By prioritizing financial literacy, technological innovation, and multi-stakeholder collaboration, banks are capable of generating tangible positive impacts on national development while simultaneously creating added value for their business operations. This study aims to analyze the strategic role of banking in supporting SDGs through a comprehensive literature review approach.
Banking Digitalization and Cybercrime Challenges Post COVID 19
The phenomenon of digitalization in the financial and banking sector has accelerated the transformation of services toward faster, more efficient, and easily accessible digital platforms. Technologies such as mobile banking, internet banking, and artificial intelligence integration enable banks and financial institutions to enhance service quality while reaching a broader customer base. The COVID-19 pandemic acted as a significant catalyst, accelerating changes in societal behavior toward cashless transactions, online shopping, and the use of super apps. However, this rapid digitalization is not without major challenges, particularly the drastic increase in cybercrime during the pandemic. Threats such as phishing, identity theft, ransomware, and data misuse demand stronger regulations, robust security systems, and improved digital literacy among the public. This article aims to analyze the relationship between the effectiveness and efficiency of digital banking services and the associated security risks, while also examining the implications for consumer behavior in the digital economy context. Using a literature review method, the study provides a comprehensive overview of both the opportunities and challenges of post-pandemic banking digitalization.
Green Banking in Islamic Banking: ESG Strategy for a Green Economy
International trends in sustainable finance, the green economy, and Environmental, Social, and Governance (ESG) highlight a global paradigm shift in modern financial practices. Green finance emphasizes funding environmentally friendly projects, while ESG provides a comprehensive framework for evaluating corporate sustainability performance. Both serve as essential pillars in building a resilient green economy that balances growth with ecological and social responsibilities. The banking sector, particularly Islamic banking, plays a strategic role in accelerating the transition toward a low-carbon economy by offering sustainable financing, developing innovative financial instruments such as green sukuk and green bonds, and adopting the Triple Bottom Line approach. Nevertheless, several challenges persist, including the limited availability of green projects, long-term investment risks, and institutional readiness to adapt to sustainable frameworks. In Indonesia, Bank Indonesia and the Financial Services Authority (Otoritas Jasa Keuangan/OJK) contribute significantly by designing sustainable finance policies aligned with the Sustainable Development Goals (SDGs). This article applies a literature review method to analyze the roles, opportunities, and barriers of green banking in the context of Islamic banking.
The Strategic Role of Islamic Banks in Financing MSMEs through Sharia Contracts in Indonesia
This study explores the strategic role of Islamic banks in financing micro, small, and medium enterprises (MSMEs) in Indonesia. As the backbone of the national economy, MSMEs face major challenges such as limited access to capital and dependence on interest-based loans. Islamic banks, operating under sharia principles, offer alternative financing mechanisms through contracts such as murabahah (cost-plus sale), mudharabah (profit-sharing), musyarakah (partnership), and ijarah (leasing). Using a qualitative approach with literature review from last five years, this research highlights how these contracts provide fairness, transparency, and risk-sharing mechanisms suitable for MSME development. Findings reveal that murabahah remains dominant due to its simplicity, yet mudharabah and musyarakah show higher potential in empowering SMEs through genuine partnerships. Moreover, ijarah is effective in enabling SMEs to access productive assets without heavy initial capital. Despite these advantages, challenges such as low financial literacy, limited regulatory support, and mismatch between products and SME needs persist. The study concludes that optimizing sharia-compliant financing, supported by education, innovation, and government policies, will strengthen Islamic banks as key drivers of inclusive and sustainable economic growth in Indonesia.
The Role of Fintech in MSME Financing: A Digital Financial Inclusion Analysis in Indonesia
The rapid development of digital technology in the financial sector has introduced fintech innovations that play a significant role in improving financial inclusion, particularly for Micro, Small, And Medium Enterprises (MSMEs). This study aims to analyze the role of fintech as an alternative financing solution for MSMEs in Indonesia and to examine the challenges in its implementation. Using a descriptive-analytical method and a qualitative literature review approach, this research explores academic studies, regulatory reports, and publications on fintech and MSMEs. The findings reveal that fintech services, such as Peer-To-Peer (P2P) lending, digital payment, and crowdfunding, provide faster, more flexible, and inclusive financing access compared to conventional banking institutions. However, limited digital financial literacy, regulatory risks, and the sustainability of fintech business models remain critical challenges. This study emphasizes that synergy among fintech companies, the government, banking institutions, and MSME actors is essential to establish an inclusive, secure, and sustainable digital financial ecosystem, thereby enhancing MSME competitiveness while supporting national economic stability.
Consumer Behavior and Usage Decisions of Mobile Banking in Indonesia
The rapid digital transformation within the banking sector has significantly accelerated the adoption of Mobile banking (M-banking) services in Indonesia. This study aims to analyze customer behavior in deciding to use M-banking and to identify the most influential factors shaping adoption. Employing a qualitative approach, the research is conducted through a literature review of academic publications released last five years, focusing on consumer behavior, decision-making, and mobile banking adoption in the Indonesian context. The findings reveal that several core factors strongly determine adoption decisions, including trust, ease of use, service quality, user experience, and socio-cultural contexts such as generational differences and religious values. Trust in system security emerges as a critical driver for ensuring long-term customer loyalty, while perceived ease of use and high-quality digital services significantly enhance satisfaction levels. Furthermore, younger generations, particularly Gen Z and millennials, demonstrate greater adaptability toward M-banking compared to older groups. In addition, religiosity is shown to strengthen adoption intentions within Islamic banking. These findings highlight that M-banking development strategies in Indonesia must holistically address technological, psychological, social, and cultural-religious dimensions to foster sustainable customer satisfaction and loyalty.
Mobile Banking Adoption and Its Impact on GenerationZ’s Shopping Behavior in Indonesia
This study aims to analyze the influence of Mobile banking (M-banking) on consumer shopping behavior in Indonesia, focusing on young generations as digital natives. A qualitative approach through literature review was employed by examining academic articles published last five years. The findings reveal that M-banking accelerates the digital transformation of the banking sector, enhances financial inclusion, and fosters the development of a cashless society. Generation Z emerges as the most adaptive group in adopting M-banking due to convenience, transaction speed, and promotional offers, although this also drives more consumptive behavior. Key challenges identified include cybersecurity risks, adoption gaps between urban and rural areas, and differences in digital literacy across society. The study emphasizes that the success of M-banking implementation is shaped not only by technological factors but also by socio-economic conditions, security issues, and consumer trust. These findings contribute theoretically to the literature on financial technology adoption and provide practical implications for the banking industry to improve digital service quality.
Cybersecurity Challenges and Strategies in Banking and Fintech in Indonesia
Digital transformation has significantly changed the landscape of the financial sector, particularly banking and fintech. Digital innovation improves efficiency, accessibility, and financial inclusion, but on the other hand, poses increasingly complex cybersecurity risks. This research aims to analyze how cybercrime threats affect financial sector stability, assess the effectiveness of existing regulations and policies, and formulate collaborative strategies to strengthen cyber resilience. Using the literature study method on academic publications and real cases from the last five years, this study found that despite regulatory efforts through OJK, BI, and BSSN, implementation still faces challenges in the form of limited resources, suboptimal policy evaluation, and weak collaboration between institutions. Fintech and Islamic banks face specific challenges related to data protection and sharia compliance, which demand a more adaptive security strategy. In conclusion, the integration of financial risk management with cybersecurity, as well as strengthening the synergy between regulators, industry, and law enforcement is the key to maintaining public trust and financial stability in the digital era.