An Empirical Study On The Impact Of Financial Technology On The Intermediary Business Of Commercial Bank

Fintech refers to a new business model and product that applies modern information technologies such as computer technology,internet technology,and mobile communication technology to financial services.It covers multiple fields such as mobile payment,internet finance,and digital currency,and is an innovation of traditional commercial bank payment and settlement methods,wealth management tools,and investment and financing channels.The emergence of financial technology enterprises such as Alipay,We Chat,Jingdong Finance and Duxiaoman Finance has lowered the threshold of financial services,extended the end of financial services,provided customers with more convenient,flexible and personalized financial services,impacted the business structure and traditional operation mode of commercial banks,and may evolve into a driving force to guide the transformation of the development pattern of the financial industry.The continuous downward trend of net interest margin of traditional commercial banks has brought significant pressure to the income of asset liability business and intermediary business.As a major component of the financial market,it is of great significance for commercial banks to rely on financial technology to empower the development of intermediary businesses,achieve strategic adjustments and business innovation.Therefore,this article takes Chinese listed banks as research samples to explore the impact of financial technology development on the intermediary business of commercial banks,aiming to explore the internal logic between the two and provide reference for the transformation of commercial banks’ business methods and profit models.Firstly,use data mining and text analysis methods to construct the Financial Technology Development Index for commercial banks.Based on the annual report data of 37 listed commercial banks from 2012 to 2021,this paper uses the Text mining method with Python software to train word vectors from 370 annual reports with fintech keywords,and uses the cosine similarity method to build the bank’s fintech development index.Secondly,a theoretical and empirical analysis framework is constructed to explore the impact of fintech on the intermediary business of commercial banks.In order to explore the impact of fintech on the intermediary business of commercial banks,this article conducted fixed effects testing,heterogeneity analysis,and robustness testing and analysis on data from 37 listed banks.The study found that:(1)fintech has a dual positive and negative impact on the intermediary business of commercial banks.(2)With the development of financial technology in commercial banks,the proportion of intermediary business income in commercial banks is showing a "U-shaped" trend.(3)There are individual differences in the impact of financial technology on different types of commercial banks.Large state-owned commercial banks are the least affected,followed by regional banks,and joint-stock commercial banks are the most affected.(4)Fintech can not only have a direct impact on intermediary businesses of commercial banks such as payment and settlement businesses,wealth management businesses and advisory services,but also play a mediating effect role in the impact of fintech on intermediary business income of commercial banks,that is,the negative impact of Fintech on intermediary business income of banks decreases with the decrease of net interest margin.Finally,based on the main research findings,relevant policy recommendations are proposed for different types of commercial banks.Firstly,from the perspective of the development of China’s banking industry,in the context of the digital economy era,we should seize the opportunity of digital dividends,strengthen the innovation of intermediary business,empower the development of intermediary business through financial technology,enhance the diversification and personalized design of intermediary business,and enhance the customer stickiness of business products;Secondly,large state-owned commercial banks should strengthen the construction of fintech subsidiaries and utilize their own advantages to vigorously develop new business models and platforms for fintech in banks;Thirdly,joint-stock commercial banks should increase cooperation with fintech companies,enhance the types of intermediary business and product innovation;Fourth,regional banks should first use financial technology to improve the contribution of intermediary business to income,and thus adapt to the development trend of financial technology to cope with the fierce market competition pressure.