Research On The Impact Of Fintech On The Profit Of Commercial Banks

Nowadays,the information technology has been developing dramatically all over the world.In this context,the integration of financial industry and technology is deepening,this makes fintech gradually become a hot research issue in Domestic and foreign countries.The development of fintech has opened up a new pattern in the financial industry and has become a weapon for breakthrough innovation in the financial industry.Under the impact of fintech,in order to consolidate their market position,Chinese commercial banks have begun to use fintech technology to innovate and upgrade their businesses,hoping to optimize their profit structure and improve profitability through the use of fintech technology.Firstly,this paper uses the literature research method,sorts out the literature,and also outlines the concepts of fintech and commercial banks’ profit.For the sake of exploring the application of fintech technology’s influence on present commercial banks’ profits more comprehensively,this paper uses the long tail theory,transaction cost theory,financial innovation theory and scale economy theory,and chooses to analyze the relationship between fintech and profit of commercial banks from the perspectives of profitability and profit structure.Secondly,this paper uses data statistical analysis method to intuitively analyze the development process of fintech at different stages,the current investment situation in fintech of commercial banks and the profit status of commercial banks,and using investigation and interview method to find out the problems existing in the commercial banks.Finally,based on the panel data of 31 commercial banks in China from 2013 to 2020,this paper conducts an empirical study,comprehensively analyzes the impact of fintech on the profit of commercial banks at this stage from the perspectives of profitability and profit structure,and verifies the path that fintech affects the profit structure of commercial banks through constructing the intermediary effect model.Through qualitative and quantitative research,four conclusions are drawn: The application of fintech can increase the profitability of commercial banks;the application of fintech has increased the proportion of non-interest income of commercial banks;the impact of the application of fintech on the profit of the four types of commercial banks in China is different;The bank fee and commission business plays an intermediary role in the impact of fintech on the profit structure of commercial banks.Finally,this paper offers four suggestions for the research conclusions: Improving the fintech level of commercial banks;Adjusting the business philosophy of commercial banks;Targeted suggestions for different types of commercial banks to develop and apply fintech technology;Vigorously develop intermediary businesses.