Technical Efficiency of Digital and Non-Digital Banks in Indonesia: A Data Envelopment Analysis (DEA) Approach for the 2024–2025 Period
DOI:
https://doi.org/10.38035/dijefa.v6i6.5870Keywords:
Bank Efficiency, DEA, Digitalization, Bank Size, Credit RiskAbstract
This study aims to analyze the efficiency of digital and conventional banks in Indonesia using the Data Envelopment Analysis (DEA) method and examine the effects of bank size, digitalization, and credit risk on efficiency. The data covers eight digital banks and eight conventional banks during the 2024–2025 period, with input variables: labor costs, total assets, and operational costs; and output variables: interest income, third-party funds (TPF), and total disbursed credit. The analysis results show that digital banks have a higher average efficiency level (0.91) than conventional banks (0.83). Bank size has a significant positive effect on efficiency, while digitalization and credit risk (NPL) have a negative effect. These findings emphasize the importance of business scale and risk management in maintaining banking efficiency in the digital era.
References
Akbar, R. A. (2009). Analisis Efisiensi Baitul Maal wa Tamwil dengan Menggunakan Data Envelopment Analysis (DEA) (Studi pada BMT Bina Ummat Sejahtera di Jawa Tengah pada Tahun 2009).
Anderloni, L., & Bongini, P. (2009). Is financial innovation still a relevant issue? In L. Anderloni, D. T. Llewellyn & R. H. Schmidt (Eds.), Financial Innovation in Retail and Corporate Banking. Edward Elgar Publishing Ltd.
Berger, A. N., & Deyoung, R. (1997). Problem loans and cost efficiency in commercial banks. 21, 849–870.
Charnes, A. (1978). Measuring the efficiency of decision making units. 2, 429–444.
Kusumastuti, S. Y., Ekonomi, F., & Trisakti, U. (2008). DERAJAT PERSAINGAN INDUSTRI PERBANKAN INDONESIA : 23(1), 29–42.
Ozili, P. K. (2018). Impact of Digital Finance on Financial Inclusion and Stability. Borsa Istanbul Review. https://doi.org/10.1016/j.bir.2017.12.003
Prayudya, D. R., Ikhwan, I., Nugroho, T., & Ramdiania, R. G. N. (2023). Debunking the myth of digital banking: Is it really that efficient? SSRN Electronic Journal. https://doi.org/https://doi.org/10.2139/ssrn.4447063
Prayudya, D. R., Ikhwan, I., Nugroho, T., & Ramdiania, R. G. N. (2025). Comparing Neo and Traditional Banking Efficiency: A Three Stage DEA Analysis in Indonesia. Jurnal Ekonomi Malaysia SSRN.
Rivai, A. (2022). The effect of digital banking technology on bank efficiency and employee demand in the Indonesian banking industry. NVEO Journal, 11(4), 2189–2199.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Tia Ichwani, Chaerani Nisa, Murtada Sinuraya, Deni Achmad Saputra
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA).
