Research On The Impact Of Digital Consumer Finance On The Risk Taking Of Commercial Banks

Due to the rapid development of the internet era,digital consumer finance,as a new type of financial service industry,is rapidly developing both domestically and internationally,bringing vitality to the development of China’s banking industry and high-quality economic and social growth in the new era.The rise of digital consumer financial services has expanded the investment channels for individuals and households,and on the other hand,financial technology companies can extend their business to the field of financial services through strong technological strength and new service methods.The operation and development of traditional commercial banks have also been challenged by risks such as weakened intermediary status and shrinking deposit loan interest spreads.In order to resist the impact of other financial institutions,commercial banks actively explore business management models and continuously innovate,actively allocate various types of risk assets,and their willingness to bear risks is also greatly affected.In this context,it is of great practical significance to examine the impact channels of China’s digital consumer financial services on commercial bank risk taking.The paper mainly focuses on the development status of digital consumer finance business in China,and strives to explore the objective manifestations and impact mechanisms of digital consumer finance on commercial banks’ risk taking,providing a diversified perspective on how to correctly treat commercial banks’ changing business models.This paper uses panel data of commercial banks from 2014 to 2020 to empirically analyze the impact of digital consumer finance on commercial banks’ risk-taking with 161 commercial banks as research samples.On the basis of existing research,refine the scope of digital consumer finance,and examine the impact of digital consumer finance on its risk taking through two channels: commercial bank consumer credit and "banking consumer finance companies".Theoretical research shows that commercial banks will deeply explore long tail customers,continuously innovate,use technology to reduce transaction costs,and shorten the asymmetry of transactions with long tail users.Narrowing the profit margin will encourage commercial banks to improve management quality,improve risk appetite,and increase the ratio of different assets.Empirical analysis shows that the transformation of commercial banks towards digital consumer finance can reduce customers’ financial pressure through scenario finance models.Based on real situation analysis,personal and household consumer credit has a small probability of default;Commercial banks can enhance their risk management capabilities to reduce losses,and investing in consumer finance companies to expand their business scale can also achieve the effect of reducing risk taking.The use of internet payment by commercial banks for transaction settlement has no impact on the selection of risky assets.The digital consumer finance business shows differences in the risk taking level of traditional commercial banks.The scale of non systemically important banks is relatively small and they face strong market competition,so small and medium-sized banks may have a higher enthusiasm for taking risks themselves.