FINTECH PARTNERSHIP AND BANK CAPITAL RESILIENCE: THE MEDIATING ROLE OF ESG PERFORMANCE IN IDX-LISTED DIGITAL BANKS IN INDONESIA (2019–2024)

Abstract

This study examines the mediating role of Environmental, Social, and Governance (ESG) performance in the relationship between fintech partnerships and capital resilience of digital banks in Indonesia. Using balanced panel data from 9 digital banks listed on the Indonesia Stock Exchange (IDX) over the period 2019–2024 (54 observations), this study adopts an explanatory quantitative approach with Fixed Effect Model (FEM) panel data regression and Bootstrap PROCESS Macro mediation analysis (Hayes, 2017). Fintech partnership is measured using a dichotomous dummy variable, ESG performance is proxied by a composite GRI Disclosure Index (0–100), and capital resilience is represented by the Capital Adequacy Ratio (CAR). The sample includes Bank Jago (ARTO), Bank Neo Commerce (BBYB), Allo Bank Indonesia (BBHI), Bank Raya Indonesia (AGRO), Jenius/BTPN (BTPN), Superbank Indonesia (SUPA), Krom Bank Indonesia (BBSI), Bank Amar Indonesia (AMAR), and Bank Aladin Syariah (BANK). The results indicate that: (1) fintech partnership has a positive and significant effect on bank capital resilience; (2) fintech partnership has a positive and significant effect on ESG performance; (3) ESG performance has a positive and significant effect on bank capital resilience; and (4) ESG performance partially mediates the relationship between fintech partnership and bank capital resilience. These findings confirm the relevance of Resource-Based View, Stakeholder Theory, and Signaling Theory in the context of IDX-listed digital banking in Indonesia.