Research On The Impact Of Financial Technology On The Operation Of Small And Medium-sized Commercial Banks

In recent years,the digital economy market has developed rapidly.Since the COVID19 pandemic,the development of most industries in China has regressed,but the scale of the digital economy still keeps growing.Under the impact of financial technology,the pressure of whether banks can stand out in the digital transformation is increasingly prominent,especially for small and medium-sized banks which are in a weak position.Small and medium-sized Banks in the financial system in China occupies an important position,is the backbone of pratt&whitney financial development,a better understanding of how financial technology for its operation,the influence of the comb in the financial environment of science and technology has made attempts to understand the pain points and difficult points of its digital transformation,and puts forward positive Suggestions,has certain theoretical and practical significance.This paper focuses on the impact of fintech on the operation of small and mediumsized commercial banks,and conducts theoretical analysis and empirical research.In the theoretical part,firstly,the key concepts,relevant literature and theoretical basis involved in this paper are sorted out in detail,and then the action mechanism of competition and cooperation between fintech and small and medium-sized banks is analyzed in detail.Empirical research part,this article selects the HP financial index and the third party pay scale as proxy variable of financial technology,the choice to return on assets on behalf of the management efficiency of the bank,and then selected a dozen representative of small and medium-sized commercial Banks 10 years of panel data as the research sample,econometric model design,This paper empirically tests how the level of fintech development affects the operation status of commercial banks,and further analyzes the similarities and differences of the impact of fintech on different types of small and medium-sized commercial banks.The results show that the scale of third-party payment has a significant negative impact on the return on assets of small and medium-sized commercial banks,that is,in the long run,the development of fintech will block the development of small and medium-sized commercial banks.Secondly,there is a significant difference in the impact of fintech on the ROA of local banks and joint-stock banks,which shows that the digital financial inclusion index has a significant impact on local banks,while it has no significant impact on joint-stock banks,that is,fintech plays a significant role in promoting the operation and development of local banks.