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

The essence of fintech is to apply fintech technologies,such as big data,artificial intelligence,biometrics and blockchain,to the normal operation of financial institutions in a reasonable way,so as to achieve the goal of financial product innovation and business model optimization.China’s fintech entered a period of rapid growth in 2016,and the traditional business model and profitability of China’s commercial banks have suffered a huge impact.With fintech sweeping the world and financial institutions facing changes,this paper studies the impact of fintech on the profitability of commercial banks to further improve the profitability of commercial banks and accelerate the innovation of business models..The research idea of this paper is divided into three steps: theoretical analysis in the first step,empirical analysis in the second step,conclusion and corresponding countermeasures in the third step.Qualitative and quantitative research methods are used to explore the impact of fintech on the profitability of commercial banks.First of all,from the aspects of qualitative analysis,this article from the credit scale,service revenue,deposits and four Angle,non-performing assets of financial technology how to influence the commercial bank profitability has carried on the careful study,at the same time,through the presentation of data and charts,objective and detailed elaborated financial technology and the status quo of the commercial bank profits,The above content provides a more substantial theoretical and practical basis for this paper.Secondly,from the aspect of quantitative analysis,the development of fintech in this paper is represented by two core explanatory variables,namely,the scale of third-party payment obtained through data collection and the fintech technology index synthesized by Baidu Index.The annual data of 35 commercial banks in China from 2013 to 2020 are taken as samples and panel models are established.Empirical analysis is used to analyze the impact of fintech development on the profitability,risk control,profit efficiency and profit structure of China’s commercial banks.Among them,the profit level of commercial banks is represented by the change of return on total assets,the risk control level of commercial banks is represented by the change of non-performing loan ratio,the profit efficiency of commercial banks is represented by the change of cost-income conversion ratio,and the profit structure of commercial banks is represented by the proportion of non-interest income.Finally,countermeasures are given according to the conclusions.In this paper,the profitability of commercial banks is measured from the four perspectives of profitability,risk control,profit structure and profit efficiency.The goal is to vividly depict the impact of fintech on the profitability of commercial banks.The last part of the paper gives policy suggestions from five aspects: strengthening cooperation with fintech companies,strengthening the application of fintech,changing the business model based on interest rate differentials,actively promoting product innovation and further strengthening risk management.