Intellectual Human Capital,Fintech And Total Factor Productivity Of Banks

With the deepening of China’s financial industry reform and opening up,competition for talents is an important part of it.At the same time,financial technology has been developing rapidly in recent years,and the work report of the 19th Party Congress also explicitly proposes to make efforts to promote the integration of finance and modern technology.In this context,China’s banking industry recognizes the importance of highquality human capital,which can not only help it gain a competitive advantage and improve operational efficiency,but also has an important role in the development of financial technology.Improving the operational efficiency of China’s commercial banks is not only a requirement for their own healthy development,but also a requirement for the high-quality development of the national economy as a whole.Total Factor Productivity(TFP)can reflect banks’ ability in competition and future development trend.Based on this,this paper explores the impact of intellectual human capital,measured by educational composition,on banks’ total factor productivity,using financial technology as a mediating variable.Theoretically,intellectual human capital affects total factor productivity of banks through the following mechanisms:(1)Intellectual human capital can directly improve TFP of banks.Human capital has an "artificial effect".As the knowledge and skills of bank employees improve,their learning and adaptive abilities increase,and the time required to learn new technologies becomes shorter,thus effectively improving their own productivity,which in turn improves the total factor productivity of banks.(2)Intellectual human capital can improve banks’ total factor productivity by enhancing their financial technology.On the one hand,the investment in intellectual human capital plays an important role in banks’ technological innovation and progress,and the increase in investment in intellectual human capital can enhance banks’ technological research and development,knowledge acquisition,transformation and utilization capabilities,and promote the progress of banks’ own financial technology.On the other hand,the development of bank financial technology can bring banks better information acquisition and processing capabilities,improve their risk management capabilities to deal with market risk,and also help banks quickly adapt to changes in user needs,develop diversified intermediate businesses,provide banks with innovative products and services in emerging fields and channels,improve their profitability,and thus enhance their total factor productivity.For the empirical study,based on the panel data of 134 commercial banks in China from 2011 to 2020,this paper measures the level of intellectual human capital of each bank using the education method,measures the level of financial technology of each bank using python web crawler technology and Baidu search method,calculates the TFP of each bank based on Malmquist index of non-parametric DEA model The mediating effect of fintech between intellectual human capital and TFP of banks.The findings are as follows:(1)Intellectual human capital has a significant effect on TFP of commercial banks,which will promote banks’ technological progress and improve their pure technical efficiency,but has no significant effect on scale efficiency.(2)The enhancement effect of intellectual human capital on TFP of different types of banks differs,with the most significant effect on agricultural and commercial banks;banks with higher innovation ability and compensation level can enhance the degree of impact of intellectual human capital on TFP of banks.(3)Intellectual human capital can further enhance TFP of banks by improving banks’ financial technology.The main contribution is that it focuses on intellectual human capital and attaches importance to its role in the enhancement of banks’ TFP and technological advancement.In addition to exploring the impact of intellectual human capital on banks’ TFP,it also empirically examines the mediating effect of financial technology between the two.Most of the existing literature on fintech research is based on the perspective of Internet finance,or from the perspective of external fintech platforms,regional fintech development environment,etc.This paper focuses on the bank’s own fintech perspective and expands the research related to bank fintech.