PENGARUH FINTECH, UKURAN BANK, DAN USIA BANK TERHADAP PROFITABILITAS PERBANKAN SYARIAH DI INDONESIA: PENDEKATAN GMM PANEL DINAMIS

Abstract

This study investigates the effect of FinTech adoption on the profitability of Indonesian Islamic banks, measured through Return on Assets (ROA), and examines the moderating roles of bank size and bank age. Using annual panel data from nine Islamic Commercial Banks over the 2016–2024 period, the study employs the Arellano-Bond dynamic panel Generalized Method of Moments (GMM) method. The baseline results indicate that FinTech adoption has a significant positive effect on ROA, while bank size has a significant negative direct effect on ROA, and bank age does not significantly affect ROA. Moderation analysis reveals that bank size significantly weakens the positive impact of FinTech on ROA, where banks below the threshold obtain greater profitability benefits from digital integration. Conversely, bank age does not moderate the FinTech–ROA relationship, indicating that bank maturity does not differentially determine the effectiveness of FinTech integration. These findings affirm that the profitability gains from FinTech are conditional on operational scale and support the importance of differentiated digital transformation policies for Islamic banking in Indonesia.