Research On The Impact Of Financial Technology On The Profitability Of Listed Banks

Since the 21 st century,China has entered the era of digital economy.With a new ware of industrial technology changes,big data,artificial intelligence,blockchain,cloud computing and other emerging technologies have also emerged,which has brought unprecedented impact on people’s production and life style.Fintech is a financial innovation mode driven by technology.Its emergence has not only impacted Chain’s traditional financial industry,but also changes the existing financial paradigm in China.In China,the banks are in the dominant position in the whole financial industry,and the listed banks,as the main body of Chinese banks,play a vital role.The rapid development of financial technology will inevitably bring some impact to the domestic listed banks.Therefore,this paper studies the impact of fintech on the profitability of listed banks.This paper first starts by defining the concept of fintech and the concept of the profitability of listed banks,sorting out the relevant literature research on the impact of fintech on the profitability of listed banks in China,and determining the key direction of the subsequent research and the key selection of data.Secondly,the development status of fintech in China and that of listed banks in China are analyzed,which makes the research object of this paper more accurate.Later,the development of fintech impacts the impact of fintech on the liabilities,assets and intermediate business of listed banks,thus bringing negative effect on the profitability of listed banks;listed banks can use fintech to reduce operating costs and broaden service objects,thus having a positive effect on the profitability of listed banks.With a sample of 34 listed banks in 2011-2020.Establish China’s fintech index from 2011-2020 by the use of “Baidu search method” and “factor analysis method”.Bank-related data of 34 listed banks in recent ten years.Using the“Hausmann test” and the “LM test”,using the fixed-effect model for empirical analysis,empirical results show that the development of fintech has a negative effect on the profitability of the listed banks in Chinn.Finally,the paper puts forward the countermeasures and suggestions to change the financial concept of listed banks and establish technology subsidiaries to improve the profitability of listed banks in China.