Research On The Impact Of Digital Transformation Of Commercial Banks On Their Business Performance

The rapid development of financial technology and the increasing competition faced by commercial banks have posed great challenges to their development.With the rapid development of digital technology,fintech institutions have also benefited from this development.The flexibility and innovation of fintech institutions can meet the financial investment needs of different customers to a greater extent,attracting many customers who originally belonged to commercial banks and shaking the position of banks in the financial industry to a certain extent.If commercial banks want to adapt to the development of digital technology and maintain their position in the financial industry,they must prompt to accelerate their own digital transformation,improve the degree of product innovation and service level,and enhance operational efficiency.This chapter firstly describes the digital transformation of commercial banks and the current situation and motivation of its development,and then analyzes the key measures of digital transformation and the impact of digital transformation on operational performance of commercial banks through the specific case of digital transformation of J commercial banks.Then,the positive and negative impacts of digital transformation on operational performance of Chinese commercial banks are analyzed.After that,the data of listed banks in China for ten years from 2011 to 2020 are selected for the empirical analysis,and the overall impact of digital transformation of commercial banks on operational performance and the impact on operational performance of commercial banks of different sizes are investigated,and the technology spillover effect is introduced as a mediating effect to explore the impact mechanism of digital transformation of commercial banks on operational performance.Finally,we conclude that(1)the digital transformation of banks has a positive impact on business performance in general;(2)the impact of digital transformation of commercial banks on business performance is heterogeneous,with national commercial banks’ digital transformation having a positive impact on business performance and regional commercial banks’ digital transformation having a negative impact on business performance;(3)the digital transformation of commercial banks makes the technology spillover effect enhance,thus has a positive impact on business performance,and the technology spillover effect has the role of mediating effect;(4)Digital transformation of commercial banks can reduce costs and thus have a positive impact on business performance,and the cost effect has a mediating effect.Finally,based on the above analysis,this paper summarizes the research findings in the last chapter and puts forward six recommendations in this regard,such as increasing investment in digital transformation,strengthening talent training,enhancing financial innovation,strengthening risk prevention,carrying out characteristic development,and improving the regulatory system,in order to continue to promote the healthy and sustainable development of digital transformation of commercial banks in China.