Research On The Influence Of Fintech On Commercial Bank’s Profit

Commercial banks are an important medium for market economic regulation,financial accommodation and national economic operation.In recent years,with the arrival of a new round of industrial technological innovation,the application of financial technology has provided commercial banks with the impetus for profit growth innovation and transformation and reform.However,the rise of many financial technology companies and the introduction of advanced financial technology technology also make China’s traditional banking industry face more severe challenges.Therefore,it is of great significance to study the impact of financial technology on the profitability of commercial banks for accelerating the rapid development of banking business and promoting the prosperity of China’s financial market.This thesis uses a combination of theoretical,empirical and case analysis to explore the impact of financial technology on the profitability of commercial banks from the two levels of profitability and profit model.First,from the perspective of profitability,emerging financial technology will affect the traditional deposit and loan and intermediate business models of banks in the short term,compress the profit space and cause negative impact on their profitability;However,in the long run,due to the technology spillover effect,this negative pressure will turn into a driving force,forcing commercial banks to change their profit model,boosting their ability to resist risks,increase the size of customer groups,and reduce operating costs,thus improving the sustainability of profitability;From the perspective of profit model,this thesis compares the profit models of domestic and foreign commercial banks,and points out the necessity of domestic commercial banks to use financial technology to innovate profit models to improve profitability;The two are mutually reinforcing.Second,empirical research and case analysis.First,use empirical research to analyze the impact of financial technology on the profitability of commercial banks.Take the panel data of 59 listed commercial banks in China from 2012 to 2021 as the sample,set the return on total assets as the explanatory variable,take the financial technology development index and profitability lag as the explanatory variable,and take the non-performing loan rate and GDP growth rate and other related factors as the control variables to build the model,First,the impact of financial technology on the profitability of commercial banks is a "U" shaped nonlinear relationship.Second,the impact of Fintech on the profitability of different types of commercial banks is different.Secondly,use case analysis to study the impact of financial technology on commercial banks’ profit model.First,analyze the direction of China’s commercial banks’ profit model transformation relying on financial technology.Second,discuss the achievements and shortcomings of China Merchants Bank’s profit model transformation case.Finally,combined with the above theoretical,empirical and case analysis results,this thesis puts forward corresponding transformation suggestions for financial technology innovation of commercial banks.