The Impact of Blockchain Technology to the Efficiency and Profitability Bank in Indonesia

Authors

  • Agus Saur Utomo Universitas Muhammadiyah Purworejo, Indonesia http://orcid.org/0000-0003-3274-6715
  • Mahendra Galih Prasaja Universitas Muhammadiyah Purworejo, Indonesia
  • Nayla Fahiya Rahmawati Universitas Muhammadiyah Purworejo, Indonesia

DOI:

https://doi.org/10.24256/kharaj.v6i2.5105

Keywords:

Blockchain, Efficiency, Profitability

Abstract

ABSTRACT.

This research empirically examines the impact of blockchain adoption to the bank’s profitability and efficiency in Indonesia. Descriptive statistic and paired sample t-test are employed to analyses the data. The sample of this study is Bank Permata, a pioneer bank in Indonesia that adopted blockchain technology. Bank Permata have a conventional service as well as syariah service unit. Secondary data was taken from bank’s financial report as long as 2019-2023.  Efficiency is proxied by BOPO ratio while profitability is proxied by ROA, ROE, GPM, OPM and NPM ratios. The study found that blockchain technology doesn’t have significant impact to the bank efficiency, however the level of bank efficiency is increasing after implementing blockchain. Bank profitability is partly affected by adoption of blockchain technology. GPM, OPM and NPM are significantly different after implementing the blockchain however ROA and ROE are not significantly different. Nevertheless, there are increasing ROA and ROE ratio after blockchain adoption.

 

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Published

2024-06-30

How to Cite

Utomo, A. S., Prasaja, M. G., & Rahmawati, N. F. (2024). The Impact of Blockchain Technology to the Efficiency and Profitability Bank in Indonesia. Al-Kharaj: Journal of Islamic Economic and Business, 6(2). https://doi.org/10.24256/kharaj.v6i2.5105

Issue

Vol. 6 No. 2 (2024): All articles in this issue include authors from 3 countries of origin (Indonesia, Brunai and Malaysia)

Section

Articles

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