The Impact Of Financial Technology Development On Banking Industry And Countermeasures

Under the background of supply-side reform,commercial banks at the core of the economic and financial system should take the initiative to shoulder the mission of supporting supply-side reforms,actively take measures to deal with the impact of financial technology,and take advantage of the technological advantages of financial technology for traditional businesses.Carry out structural reforms on the supply side,gradually update and replace the extensive business development model based on the demand side,increase the effective supply of traditional services,improve quality and efficiency,and promote the development of the real economy and the transformation and upgrading of traditional businesses.Under the premise of in-depth analysis of the impact of financial technology on commercial banks,this paper explores the quality and efficiency of traditional business of commercial banks from the perspective of supply-side reform.Firstly,through the analysis of the status quo of domestic and foreign financial technology research and related theories,this paper lays a sufficient theoretical foundation for the research of this paper.From the perspective of technology spillover utility and competitive utility of financial technology,it analyzes the impact of financial technology on commercial banks.On the one hand,the in-depth development of big data technology can transform the business thinking mode of commercial banks.The application of block chain technology can simplify the business process of commercial banks.The utilization of cloud platforms can optimize the resources of commercial banks,and the popularity of artificial intelligence can be improved.The quality of financial services of commercial banks drives the innovation value of commercial banks,expands the coverage of commercial banks,and helps to improve the profitability of commercial banks.On the other hand,more and more Internet financial platforms and financial technology companies the financial business based on the intelligent risk control,personalized service and payment settlement function brought by financial technology has formed a strong competition with the traditional business of commercial banks,which has reduced the profitability of commercial banks to a certain extent.Therefore,it is necessary to further examine the overall effect of financial technology on commercial banks.This paper selects the annual financial data of a total of 37 commercial banks from 5 stateowned banks,12 joint-stock banks and 20 city commercial banks from 2011 to 2017 as an empirical sample,and establishes a panel data model using Eviews10.0 for empirical analysis.Under the combined effect of the two effects of technology spillover utility and competitive utility,which utility has a more significant impact on the profitability of commercial banks.The empirical analysis shows that the development of financial technology has a significant negative impact on the profitability of commercial banks,that is,the competitive effect of financial technology on commercial banks exceeds the effect of technology spillovers.This may be mainly because although financial technology has the technical advantages of big data and block chain,commercial banks are basically “followers” rather than “leaders” of financial technology.At present,most commercial banks in China have these technologies.The degree of research and application is not high,and the technological advantages of financial technology have not been fully utilized to transform the traditional business model.In addition,the related influence of financial technology on the development of commercial banks has been reflected.As a state-owned large-scale bank,CCB,relying on its strong social credit and comprehensive strength,actively used financial technology to innovate and transform the traditional business development model and achieved good results.The positive effects,among which,the construction bank uses financial technology to develop inclusive finance,and the difficulty of solving small and micro enterprises' loans is of certain significance for other banks.Therefore,this paper takes Construction Bank as an example to analyze how the construction bank can cope with the impact of financial technology in the context of supply-side reform.Finally,based on the supply side reform to reduce costs,improve quality and efficiency,and improve transaction security,this paper puts forward the countermeasures for China's commercial banks to cope with the development of financial technology.First,the use of advanced technology of financial technology to help the development of inclusive finance;Using big data technology to establish a sound risk control mechanism;third,using financial technology to provide technical guarantee for commercial banks to pay settlement services;fourth,using financial technology to create innovative smart banks,for state-owned large and medium-sized banks and joint-stock commercial banks Create smart payment settlement business and intelligent credit business.For city commercial banks,this paper proposes to establish direct sales banks and use local advantages to strengthen local e-commerce.Fifth,strengthen cooperation with financial technology companies;sixth,increase the training of financial technology professionals.Through these suggestions,it is hoped that it will help promote the supply-side reform of the traditional business of commercial banks,and provide strong financial support for promoting the development of the real economy and the transformation and upgrading of commercial banking.