This study examines the effect of fintech on retail banks stock return listed in Indonesia Stock Exchange for the period of 2016-2018 as today’s new technology lead to the emergence of fintech companies playing the same role as retail banks in the financial industry. This study is conducted quantitatively using monthly data from January 2016 to October 2018 and uses fintech as independent variable, proxied by fintech funding frequency and fintech funding value. Data transformation is conducted due to data volatility. The data of fintech funding, both frequency and value, is transformed into standardized fintech funding and growth of fintech funding. The data is obtained from Crunchbase, while the data of stock returns is obtained from Investing. This study further analyzes the data using Fama French Three-Factor Model and panel data regression. We found that fintech has no significant effect on retail banks’ stock returns listed in Indonesia Stock Exchange for the period of 2016-2018. The findings of the study provide some useful insights in understanding fintech companies’ current position to retail banks in Indonesia. This study also suggests banking institutions, fintech companies, policy-makers, and others to take advantageous steps in building inclusive financial sectors.

Abstract
1. Introduction
2. Literature Review and HypothesisDevelopment
    2.1. The Role of Retail Banks
    2.2. The Emergence of Fintech Companies
3. Methodology
4. Results
5. Discussion
6. Conclusion
References

• Saraya Cita ASMARANI(Department of Business Administration, Faculty of Administrative Science, Universitas Indonesia)
• Chandra WIJAYA(Department of Business Administration, Faculty of Administrative Science, Universitas Indonesia) Corresponding Author.