Research On The Impact Of Financial Technology On The Profitability Of City Commercial Bank

Under the background of digital economy,the rapid rise of Fin Tech has had a tremendous impact on the traditional financial market and financial services.Fin Tech companies and non-bank financial institutions born from the rise of Fin Tech have weakened the intermediary function of commercial banks,accelerated financial disintermediation,seized some customers and markets,and affected some businesses of commercial banks.However,while Fin Tech brings challenges to traditional commercial banks,it also brings huge opportunities.The impact of Fin Tech on small and medium-sized commercial banks is relatively large.Most of the city commercial banks are small and medium-sized commercial banks.The development level of Fin Tech is low and the development speed is relatively slow.How does the development level of Fin Tech affect the profitability of city commercial banks?Although some research has been involved in the academic field,the research on Fin Tech and city commercial banks is still very rare.Therefore,this issue is worth exploring.In this paper,both theoretical and empirical aspects are discussed.On the one hand,the impact of Fin Tech on urban commercial banks is analyzed theoretically.On the other hand,the impact of Fin Tech on the profitability of urban commercial banks is discussed empirically,and the ways of impact are discussed preliminarily.The first part of this paper firstly introduces the research background,explains the significance of the research from both theoretical and practical perspectives,sorts out and comments the relevant research literature,and then elaborates the research content,framework and application methods of this paper,and points out the innovation and shortcomings of this paper.The second part defines the concept of Fin Tech and the profitability of city commercial banks studied in this paper,and makes theoretical analysis and research assumptions.It believes that the active development of Fin Tech of city commercial banks can expand the area of their financial services,expand the market of small and medium-sized customers,reduce their operating and transaction costs,improve their payment efficiency,and thus improve their profitability.In the third part,based on the institutional Fin Tech development indicators in People’s Republic of China(PRC)Financial Industry Standard,30 indicators are selected to construct the Fin Tech development indicator system of China’s urban commercial banks.Through the analysis of the 2017-2021 annual reports of 28 listed urban commercial banks in China,the development level of Fin Tech is calculated by using Fermatean fuzzy TOPSIS method with weighted geometric operator.In the fourth part,the fixed effect panel data model is constructed with the development level of Fin Tech of city commercial banks as the explanatory variable and the profitability level of city commercial banks represented by the asset return rate index as the explanatory variable,for intermediate effect test and regression analysis.The results show that the development level of Fin Tech of city commercial banks has a significant positive correlation with their profitability to a certain extent.The improvement of the development level of Fin Tech can improve the profitability of city commercial banks.Fin Tech can improve the level of profitability by improving the management level of bank assets.Finally,the paper summarizes the results of theoretical and empirical analysis,and puts forward suggestions from the aspects of capital investment,team building,research and application,risk control,etc.