The Impact Of Fintech Investment On Profitability Of Commercial Banks

With the rapid development of big data,information technology,blockchain,artificial intelligence,cloud computing and other technologies are becoming more and more mature,with obvious spillover effect and increasingly close integration with all walks of life.In the financial field,fintech,as the product of the integration of finance and technology,has become an important part of the future industrial planning of all countries and industries around the world.On the one hand,the ever-changing fintech has brought advanced business models and technical means to commercial banks and accelerated the digital transformation of commercial banks.On the other hand,it has also caused a serious impact on the traditional business philosophy of commercial banks.In the face of the tide of the fintech era,how commercial banks should actively respond to and take advantage of the trend of development,and how relevant national departments should promote the transformation and upgrading of the financial industry with the help of the technological dividend of the development of fintech,are the important issues in the future for a long period of time.Based on relevant literature research and from the perspective of economics,this paper first sorted out the relevant basic theories between fintech and commercial banks’ profitability.Secondly,it analyzes the influence mechanism of fintech on the profitability of commercial banks,further divides commercial banks into state-owned banks,jointstock banks and city banks according to their attributes,and further refines the influence of fintech on different kinds of commercial banks.Thirdly,this paper uses 2017-2021 data of 28 commercial banks in three categories to analyze the influence of fintech on the profitability of commercial banks by two-way fixed effect,sorts out its specific influence mechanism by the intermediary effect of operation efficiency,and carries out regression according to the types of commercial banks.To test whether the influence of fintech on different types of commercial banks is significantly different.Finally,in the robustness test part,this paper selects alternative variables to carry out regression again,in order to verify the reliability of the above empirical results.The results show that:(1)the development of fintech can effectively enhance the profitability of commercial banks;(2)The mediating effect based on operation efficiency is significant;(3)The influence of fintech on the profitability of commercial banks is indeed heterogeneous,and its promotion effect on state-owned banks is more obvious.Combined with theoretical analysis and empirical results,this paper puts forward policy suggestions for the government and the banking industry under the background of fintech,including: In terms of policy supervision,government departments should adhere to overall coordination,make a good strategic layout,improve the fintech supervision system,clarify the division of responsibilities between banks and non-banking financial institutions,and promote the overall coordinated development of the industry.Commercial banks should be fully aware of the important position and transformative role of fintech development.They should insist on increasing internal investment in science and technology,actively carry out external cooperation,and seize the opportunity for transformation and development by combining their existing advantages.At the same time actively promote the synchronous transformation of internal management practices,improve operating efficiency,enhance the overall core competitiveness of the industry.