Branches or Branchless Strategy? The Most Influencing Factors in Financing Industry Performance

There are still inconsistencies between the influence of the branch offices or distribution channels. This research aimed to confirm the influence of branch network offices and the performance of the finance company in Indonesia. This research also aimed to see the regional macroeconomics indicator (GDRP, Economic Growth, Population and income per Capita) impact bank performance. A literature study was conducted to formulate hypotheses, and a descriptive quantitative method was conducted based on secondary data of 34 provinces in Indonesia for hypothesis testing. Then PLS program was used to analyze the correlation between variables. The study's findings showed that the number of branches, GDRP, and Economic Growth positively influenced the performance. This research is expected to contribute to the financing industry in addressing the branchless phenomenon in several industries in Indonesia: whether this phenomenon needs to be followed or not, or does it still need to be modified to improve performance which has declined in the last few years