Conventional, Sharia & Digital Banking: Comparison of Bank Soundness and Performance in Indonesia

Abstract

This research aims to compare the soundness and performance of digital, conventional and sharia banks in Indonesia. The sample in this research were 8 digital banks, 8 sharia banks and 5 conventional banks from 2021 to 2023 as measured by CAMEL for banking soundness and ROA, ROE and NIM for banking performance. This research implements non-parametric difference test methods such as Kruskal-Wallis and Friedman used to analyze differences in banking soundness and performance. The results of the research show that there are differences in the level of performance and soundness between digital, conventional and sharia banks in Indonesia. Furthermore, the soundness and performance of conventional banks are superior to digital banks and sharia banks.