Digital transformation has slowly been implemented throughout the years, applied
by companies. Nevertheless, there is a need to search for the benefits of digital
transformation for companies, especially for commercial banks. This study is
conducted to discover the impact of digital transformation on banking businesses.
The research was conducted with Indonesian commercial banks listed on the Indonesian Stock Exchange (IDX). The analysis for digital transformation will be
measured through text analysis on bank’s annual report from 2020 to 2024.
Research has shown that digital transformation has a negative impact on bank’s performance measured by return on asset. This research shows there is a profitability paradox in banks’ actions on investing in digital transformation.