A Heterogeneous Study Of The Impact Of Fintech On The Business Performance Of Commercial Banks

With the continuous development of Internet technology,technologies such as big data,blockchain and artificial intelligence have also gradually penetrated into the financial industry,and fintech has come into being.The emergence of Fin Tech has not only improved the efficiency of financial services,but also overturned the operation mode of the traditional financial industry.Commercial banks,as major players in the traditional financial industry,are bound to be influenced by Fin Tech.On the one hand,fintech companies crowd out commercial banks’ market share and have a suppressive effect on commercial banks’ operations.As the service scope of non-bank fintech companies overlaps with that of commercial banks,and fintech companies attract a large number of customers with their innovative products and efficient business processes,they have a huge impact on commercial banks’ deposit business,loan business and intermediate business,thus reducing the profitability of commercial banks.On the other hand,fintech has a technological spillover effect on commercial banks.In order to adapt to the new financial environment with strong technological attributes,commercial banks choose to cooperate with fintech companies or even develop fintech technologies on their own and apply them in their daily operations,which accelerates the digital transformation of commercial banks.This move not only expands the market scale of commercial banks and reduces operating costs,but also enhances banks’ risk management capabilities.It is worth exploring how commercial banks will react to the rapid development of fintech,and whether there are differences in the degree of impact of fintech on different commercial banks.Based on theory,this paper investigates the heterogeneity of the impact of fintech on commercial banks’ business performance through mechanism analysis and empirical analysis,and finally draws relevant conclusions.Firstly,the mechanism of the impact of fintech on commercial banks is analyzed from both positive and negative aspects.Second,in the process of empirical analysis,banks are classified according to the nature of equity and 24 commercial banks’ data from2011 to 2020 are collected as the research samples;financial indicators related to profitability,safety and liquidity of commercial banks are collated and the entropy value method is used to measure the level of commercial banks’ business performance as the explanatory variables;the number of bank fintech-related patent applications is used to measure the level of bank fintech,and the Beijing University Digital Financial Inclusion Index measures the level of external financial technology,both of which are used as explanatory variables;through sub-sample regression,the impact of internal financial technology and external financial technology of banks on the business performance of commercial banks of different nature is studied.The study concludes the following: First,the competitive effect of external fintech on commercial banks’ operating performance is greater than the technology spillover effect,i.e.the emergence of fintech will bring negative impact on commercial banks’ operation;Second,the impact of external fintech on commercial banks’ operating performance is heterogeneous,specifically large state-owned commercial banks have the ability to resist the impact when facing competition from non-bank fintech companies The competitiveness of urban commercial banks is the weakest in comparison;Third,the development of financial technology by large state-owned banks and joint-stock banks helps to improve their own business performance,while the business performance of urban commercial banks is not significantly affected by their own financial technology level.