Research On The Impact Of Fintech On The Profitability Of Commercial Banks

Technology has long become the first productive force.In recent years,the term "financial technology" has frequently appeared in the public’s view.As a new product of the deep integration of information technology and the financial industry,financial technology is having an unprecedented and profound impact on the traditional financial industry,constantly refreshing people’s cognition,and making us deeply feel that "technology drives and defines business".At the same time,it has brought new challenges and opportunities to the traditional financial industry.Currently,in order to integrate into the wave of financial technology,most commercial banks in China are accelerating the speed and intensity of their investment in financial technology,hoping to empower their own profitability.Through literature review,on the one hand,the "substitution effect" brought by financial technology is changing the traditional financial order of the financial industry,weakening the central position of commercial banks in the financial industry.On the other hand,the development of financial technology is accompanied by the "technology spillover effect".Therefore,commercial banks can improve their profitability by absorbing technology spillovers,innovating financial products,and building a new risk control system.This article mainly focuses on the deep integration of "finance" and "technology" in the current context,explores the impact of the development of financial technology on the profitability of commercial banks in the new era,and puts forward four research hypotheses through theoretical analysis.A financial technology index is constructed through factor analysis,and the hypotheses proposed in this article are empirically analyzed and verified.The empirical research results show that the competition substitution effect brought about by the development of financial technology forces commercial banks to increase their risk-taking and exacerbate the pressure of asset-liability management,hindering their profitability improvement.Finally,this article proposes countermeasures and suggestions from the national and individual bank levels,including playing the role of basic scientific research in driving financial innovation,improving the legal system related to financial technology,innovatively regulating financial technology,improving the level of digital operation and management,and strengthening financial technology cooperation and talent cultivation among enterprises.