The Impact Of Fintech On The Total Factor Productivity Of Traditional Financial Institutions

If my country wants to develop its economy,it is necessary to deepen the supply-side structural reform as the main line,so as to realize the reform of quality,efficiency and power,so as to improve the total factor productivity.which occupies an important position in my country’s financial system.The operational efficiency of traditional financial institutions plays a vital role in maintaining financial market stability and promoting high-quality development of the real economy.In recent years,with the wide application of new technologies such as blockchain,big data and artificial intelligence in the financial industry,financial technology has emerged and achieved vigorous development.The new financial industry uses financial technology to solve information acquisition,customer screening,A series of problems in terms of service efficiency and risk assessment and prevention and control force traditional financial institutions to transform;with the rapid development of financial technology,the competition landscape and business model of traditional financial institutions are facing a situation of transformation and reshaping,which makes traditional financial institutions transform.The development situation of financial institutions is getting more and more severe.Based on the above background,many scholars have studied the relationship between fintech and bank risk-taking and competitive behavior,and there are few studies discussing the relationship between fintech and the total factor productivity of traditional financial institutions.This paper studies the relationship between financial technology and the total factor productivity of traditional financial institutions in my country mainly through theoretical analysis and empirical analysis.In addition,from the perspective of resource allocation capability and profitability,the impact of these factors on the relationship between FinTech and traditional financial institutions’ total factor productivity is analyzed.Through the data of the annual reports of each bank,the net interest income,total profits and total loans are used as output indicators,and operating expenses,total fixed assets and total deposits are used as input indicators.The DEA-Malmquist model is used to measure the total factor productivity of traditional financial institutions,and the regional financial technology level is measured using the Peking University Digital Financial Inclusion Index.Finally,the fixed effect model is used to obtain the effect of financial technology on the total factor productivity of traditional financial institutions in my country.impact results.The findings of the study:First,financial technology has significantly improved the total factor productivity of traditional financial institutions.Second,through the study of the intermediary effect,it is concluded that the development of regional financial technology can alleviate the information asymmetry of traditional financial institutions to a certain extent,thereby effectively improving the resource allocation ability in terms of "quality";on the other hand,in terms of "quantity" To improve the profitability of traditional financial institutions,thereby improving the total factor productivity of traditional financial institutions.Third,fintech has a heterogeneous impact on the total factor productivity of traditional finance;and the impact of fintech on total factor productivity is more significant for regions with higher levels of fintech development and state-owned banks.Therefore,in the critical period of China’s economic transformation,my country should vigorously promote the development of financial technology,use modern technology to empower traditional financial institutions,and promote the financial technology level of traditional financial institutions,so that my country’s financial industry can achieve a higher level and higher Quality,more efficient development.The research results of this paper have important theoretical support and practical value for further promoting economic development,deepening the reform of traditional financial institutions,and promoting the better application of financial technology.