Financial Technology is an innovation in technology-based finance that aims to increase effectiveness for both users and banks. It is hoped that the application of Fintech will improve banking performance and values from the investors' side. This study aims to determine the effect of the presence of Financial Technology, which is assessed through four Financial Technology products, there are Mobile Payment, Mobile Banking, Internet Banking and ATM on banking performance as measured using return on assets (ROA) which in turn has an impact on banking value as measured by using Tobin's Q. This study uses twenty-three (23) banks listed on the Indonesia Stock Exchange (IDX) and issued Financial Technology products in the 2018 and 2019 periods using linear regression mediation analysis with Causal Step Approach. The results showed that the Financial Technology products, there are Mobile Banking, Internet Banking, and ATMs had a significant effect on banking value and performance, while Mobile Payment did not have a significant effect on banking value and performance.

Keywords

Financial Technology, ROA, Tobin’s Q