Research On The Impact Of Financial Technology On The Profitability Of Commercial Banks In My Country

Since 2017,the world has officially entered the era of fintech 3.0.By the end of 2019,the coverage rate of financial technology in China has jumped to the first place in the world,and its coverage rate is as high as 69%,36% higher than that of the United States.Fintech plays an important role in the transformation and upgrading of the traditional financial industry.In order to further study the impact of financial technology on the profitability of traditional commercial banks,this paper first discusses theoretical analysis,and then on the basis of theoretical analysis,puts forward research hypotheses,conducts empirical analysis through the data of 172 commercial banks in China,and finally verifies the proposed hypotheses through empirical results,and the empirical analysis results obtained are as follows:First,the initial stage of the development of financial technology,financial technology will reduce the profitability of commercial banks,because in the initial stage of financial technology development,traditional commercial banks continue to be squeezed by new businesses developed by financial technology companies to occupy the market space,resulting in a decrease in their profitability,with the continuous maturity of financial technology development,the development of financial technology will force commercial banks to embrace financial technology,commercial banks in the financial technology company to help,profitability gradually become stronger,therefore,the profitability of commercial banks will be reduced first,Post-elevated U-shaped trend.Second,the impact of fintech on different types of commercial banks varies.City commercial banks are the most affected by financial technology,followed by joint-stock commercial banks,and state-owned banks are the least affected.From the perspective of the ability to cope with the impact,city commercial banks due to small scale,single business,when the emergence of financial technology,the most important loan business of city commercial banks will be greatly impacted,due to the lack of support of other businesses,its advantages will disappear,so it is the most affected,joint-stock banks due to its commercial model is relatively mature,so the impact of financial technology is smaller than that of city commercial banks;the volume of state-owned banks is relatively large,the business is extensive,coupled with government policy support,Therefore,it is least affected by fintech.From the perspective of financial technology improving the profitability of commercial banks,financial technology has the greatest improvement in state-owned banks,followed by city commercial banks,and finally joint-stock banks.