Financial and Marketing Determinants of Banking Performance in Indonesia: A Systematic Literature Review
Keywords:
Banking Performance, Financial Determinants, Marketing Determinants, Customer Satisfaction, Digital Banking, Indonesia, Systematic Literature ReviewAbstract
This study conducts a systematic literature review to synthesize the financial and marketing determinants of banking performance in Indonesia. Drawing on Scopus-indexed empirical studies, the review integrates evidence on how traditional financial fundamentals, such as capital adequacy, asset quality, liquidity, and operational efficiency and marketing-based constructs, including service quality, customer satisfaction, loyalty, trust, and digital banking adoption, shape bank performance outcomes. The findings indicate that financial determinants remain the dominant predictors of profitability and stability, reflecting the prudential orientation of Indonesia’s banking regulatory environment. At the same time, marketing determinants increasingly function as strategic complements by enhancing customer retention and revenue stability in a competitive and digitally mediated market. However, the literature remains fragmented, with limited integrative models explicitly linking financial robustness to customer-based value creation. This review contributes by mapping dominant determinant clusters, identifying methodological and conceptual gaps, and proposing directions for integrative future research. The findings offer practical implications for bank managers and policymakers in designing performance strategies that are simultaneously financially robust and market-responsive to support sustainable competitiveness in Indonesia’s banking sector.
Downloads
References
Akoi, S., & Andrea, S. (2020). The determinants of the performance of the banking sector: evidence from an emerging market. Journal for Social Sciences (MEIJSS), 2(4), 192-202.
Aldeen, K. N., Siswahto, E., Herianingrum, S., & Al Agawany, Z. M. W. (2020). Determinants of bank liquidity in Syria: a comparative study between Islamic and conventional banks. International Journal of Accounting, Finance and Business (IJAFB), 5(26), 33-49.
Amanu, A. D., & Gebissa, B. (2021). Analyzing the determinants of financial performance of micro financial companies: A case study. International Journal of Finance, Insurance and Risk Management, 11(1), 15-23.
Antoun, R., Coskun, A., & Georgievski, B. (2018). Determinants of financial performance of banks in Central and Eastern Europe. Business and Economic Horizons, 14(3), 513-529.
Batrancea, L. M., & Fetita, A. (2023). Empirical research study on the determinants of market indicators for 41 financial institutions. Journal of Risk and Financial Management, 16(2), 78.
Derbali, A. (2021). Determinants of the performance of Moroccan banks. Journal of Business and Socio-Economic Development, 1(1), 102-117.
Eklof, J., Podkorytova, O., & Malova, A. (2020). Linking customer satisfaction with financial performance: an empirical study of Scandinavian banks. Total Quality Management & Business Excellence, 31(15-16), 1684-1702.
Gupta, N., & Mahakud, J. (2020). Ownership, bank size, capitalization and bank performance: Evidence from India. Cogent Economics & Finance, 8(1), 1808282.
Gyau, E. B., Appiah, M., Gyamfi, B. A., Achie, T., & Naeem, M. A. (2024). Transforming banking: Examining the role of AI technology innovation in boosting banks financial performance. International Review of Financial Analysis, 96, 103700.
Horobet, A., Radulescu, M., Belascu, L., & Dita, S. M. (2021). Determinants of bank profitability in CEE countries: Evidence from GMM panel data estimates. Journal of Risk and Financial Management, 14(7), 307.
Islam, A. K., Amin, M. B., Hossain, A. S., Islam, R., & Popp, J. (2023). Critical success factors of the financial performance of commercial private banks: A study in a developing nation.
Le, T. D., & Ngo, T. (2020). The determinants of bank profitability: A cross-country analysis. Central Bank Review, 20(2), 65-73.
Ledhem, M. A., & Mekidiche, M. (2020). Economic growth and financial performance of Islamic banks: a CAMELS approach. Islamic Economic Studies, 28(1), 47-62.
Menicucci, E., & Paolucci, G. (2023). ESG dimensions and bank performance: an empirical investigation in Italy. Corporate Governance: The International Journal of Business in Society, 23(3), 563-586.
Ngumo, K. O. S., Collins, K. W., & David, S. H. (2020). Determinants of financial performance of microfinance banks in Kenya. arXiv preprint arXiv:2010.12569.
Nouaılı, M. A., Abaoub, E., & Ochı, A. (2015). The determinants of banking performance in front of financial changes: Case of trade banks in Tunisia. International Journal of Economics and Financial Issues, 5(2), 410-417.
O’Connell, M. (2023). Bank-specific, industry-specific and macroeconomic determinants of bank profitability: evidence from the UK. Studies in Economics and Finance, 40(1), 155-174.
Siddique, A., Khan, M. A., & Khan, Z. (2022). The effect of credit risk management and bank-specific factors on the financial performance of the South Asian commercial banks. Asian Journal of Accounting Research, 7(2), 182-194.
Yusuf, M., & Ichsan, R. N. (2021). Analysis of banking performance in the aftermath of the merger of bank syariah indonesia in Covid 19. International Journal of Science, Technology & Management, 2(2), 472-478.
Yusuf, Y. (2023). SYSTEMATIC LITERATURE REVIEW OF THE BANKING SECTOR BUSINESS SUSTAINABILITY MODEL. In International Conference On Economics Business Management And Accounting (ICOEMA) (Vol. 2, pp. 619-625).
Zavalii, T., Lehenchuk, S., Chyzhevska, L., & Hrabchuk, I. (2025). Determinants of financial performance in advertising and marketing companies: evidence from central and Eastern European countries. Journal of Risk and Financial Management, 18(3), 141.
