Research On The Impact Of Financial Technology On The Efficiency Of Commercial Banks

In today’s global financial market,with the rapid development of information technology,the business model and organisational structure of commercial banks have undergone significant changes,and consumers’ demand for financial services has become increasingly diversified.On the other hand,due to the impact of many external factors such as the global economic transformation and the financial crisis,the business activities of China’s banking industry have been affected and commercial banks are facing greater challenges to their efficiency and profitability.Against this backdrop,more and more commercial banks have started to incorporate fintech into their strategic planning to improve efficiency and customer satisfaction through digital transformation and innovation in order to remain competitive.Therefore,an in-depth analysis of the impact of fintech on the efficiency of China’s banking industry is of great practical significance in promoting the acceleration of fintech changes in China’s banking industry and improving the efficient operation of China’s banking industry.This paper mainly starts from technology spillover theory and long tail theory,selects a total of 31 commercial banks in China during the period of 2012-2021 as samples,constructs the financial technology index of the banking system through web crawler and text analysis method,and measures the total factor productivity of each commercial bank through the design of input and output,and finally empirically analyzes the impact and mechanism of the effect of financial technology on the efficiency of commercial banks in China.The results show that: 1)Fintech has a significant role in promoting the efficiency of commercial banks;2)the impact of Fintech on the efficiency of commercial banks in China shows obvious heterogeneity,and can significantly improve the efficiency of joint-stock commercial banks and rural commercial banks,while the effect on the efficiency of state-owned banks and urban commercial banks is not obvious;3)Fintech affects the efficiency of banks by reducing their risk-taking.Based on the above arguments,this paper puts forward three recommendations:1)Commercial banks should embrace the development of fintech in a more proactive manner and strengthen the construction of fintech infrastructure.2)Different types of banks should make differentiated strategic layouts in light of their actual situation.3)Insist on the unity of innovation and risk prevention to safeguard data security.