NEW METHOD OF SHARIA PAYMENT PLATFORM SWOT ANALYSIS FROM INDONESIA BANKING SECTOR: FINANCIAL INDICATORS IMPACT ON FINANCIAL PERFORMANCE OF ISLAMIC BANKS

Abstract

The Sharia payment platform has also played a significant role in the success of the Islamic banking system. The financial performance of the Islamic banking system has been an essential factor for the success of the global banking sector, and the Sharia payment platform has played a significant role in the success of the Islamic banking system. Recent studies and policymakers must pay close attention to this element. Thus, this study explores the effect of financial variables such as liquidity, depositor growth, interest rate, efficiency, and bank size on the financial performance of Islamic banks in Indonesia. In addition, a SWOT analysis of the Sharia payment platform of Islamic banks in Indonesia is conducted. The study retrieved secondary data from the databases of twelve Islamic banks between 2012 and 2021. The researchers used the cross-sectional augmented distributed lag (CS-ARDL) method to examine the relationship between the variables. The results demonstrated a favorable relationship between liquidity, depositor growth, interest rate, efficiency, and bank size and the financial success of Islamic banks in Indonesia. The SWOT analysis revealed that the Sharia payment platform for Islamic banks has a more robust platform. The research provides policymakers with guidance for implementing policies to improve financial performance through a Sharia payment platform and effective financial indicators.