The Impact of Digital Bank Stock Prices on the Banking Sectoral Index in Indonesia

Abstract

This study aims to examine the relationship between digital bank stock prices and the banking sectoral index listed on the Indonesia Stock Exchange (IDX). Digital banks represent a relatively new segment in the banking industry, offering technology-based services that may contribute to stock market dynamics. This research applies a quantitative approach using weekly data from five digital banks (BBHI, AMAR, BBYB, BANK, and ARTO) and the banking sectoral index over the period September 2021 to December 2024. Due to the non-normal distribution of the data, the analysis employs the Spearman’s rho correlation test. The results show a positive and statistically significant relationship between digital bank stock prices and the banking sectoral index, with a correlation coefficient of 0.581 and a significance value of 0.000. These findings indicate that movements in digital bank stock prices are moderately associated with movements in the banking sectoral index, although they do not fully explain its variation.