Research On The Influence Of Fintech On The Operating Performance Of Chinese Commercial Banks

Fintech is a product that combines finance and technology.Its rise has greatly influenced the daily operation of commercial banks.Fintech giants,represented by Alibaba and Tencent,have challenged commercial banks in terms of deposit and loan,transfer payment and settlement business.Commercial banks face the risk of declining operating profits,but at the same time,they are forced to strengthen their own Fintech innovation,and integrate Fintech with their own business,in order to improve business performance.There are more than 4,000 commercial banks in China.Different commercial banks have different operating models and may be affected by the development of Fintech.There are also differences in the level of economic development and Fintech development among different regions,which may also have different impacts on commercial banks.As a market enterprise,profit is the first priority of commercial banks,and the profit level is also the index that management pays the most attention to.Therefore,analyzing the influence of Fintech on the business performance of commercial banks can not only help commercial banks improve their own business performance,but also point out the direction for their future development.This paper takes the financial technology as a starting point,briefly introduces the development history and current situation of the concept of financial technology in our country since its emergence,expounds the relevant theories,analyzes the corresponding influence mechanism,and then builds an empirical model to explore.On the basis of previous literature studies,this paper selected a total of 122 banks from 5 state-owned commercial banks,12 joint-stock commercial banks and 105 city commercial banks during the decade from 2011 to 2020 as research samples,and conducted regression analysis on the samples by constructing two-way fixed effect data model.According to the regression results,it summarizes the influence of each index on the business performance of commercial banks,and finally puts forward countermeasures and suggestions respectively.Through empirical analysis,this paper draws the following conclusions:First,the development of Fintech can significantly improve the business performance of commercial banks;Second,the profit and loss direction of commercial banks in the later period is basically the same as that of the previous period;Third,the non-performing loan ratio has a significant negative impact on the operating performance of commercial banks.Fourth,there is a significant positive correlation between regional GDP and commercial bank performance.In addition,the lack of supervision of third-party platforms is extremely detrimental to the development of commercial banks.Finally,based on the conclusions of this paper,countermeasures and suggestions are put forward to improve the business performance of commercial banks: strengthen financial technology innovation,absorb professional talents,improve risk control ability,regulate the macro-economy,and improve the supervision mechanism.