Research On The Impact Of Fin Tech Development On The Profitability Of Commercial Banks

As a cross industry innovation of science and technology in the financial f ield,Fin Tech has developed rapidly in recent years and has become the core "booster" of the transformation and upgrading of major industries in the financial market,which has a subversive impact on the business transaction channels,organization and operation modes of financial institutions and customers’ trading habits.As a financial medium,commercial banks have always had absolute advantages in the market,but due to the emergence of Internet companies and Fin Tech companies one after another,their "overlord" status has been threatened,and their profitability has inevitably been affected.However,commercial banks are not willing to be tied up and actively seek a business model for coordinated development with Fin Tech and seizing market share,so as not to be squeezed out by Fin Tech innovation companies represented by Ant Group,Fi T,Finance SN and JD Digits.In this context,by analyzing the development and application process of Fin Tech in commercial banks and studying its impact on bank profitability with specific data,it has important theoretical and practical significance for the all-channel digital transformation and upgrading of commercial banks,and indirectly promotes the stable and efficient operation of the financial industry.This dissertation selects 43 listed banks from three aspects of large state-owned commercial banks,joint-stock commercial banks and small urban commercial banks as samples,and uses the annual report data from 2011 to 2020 to conduct panel data analysis to empirically test the impact of the development of Fin Tech on the overall profitability of China’s commercial banks and the profitability of deposit and loan business,intermediary business and investment business,The results show that the development of Fin Tech has an effect on the overall profitability of China’s commercial banks and the profitability of deposit and loan business,which shows an "inverted U-shape" on the whole,that is to say,the initi al development of Fin Tech promotes the profitability of commercial banks to rise.With the deepening of the development of Fin Tech,its impact on the profitability of commercial banks turns from positive to negative,At the same time,the impact of Fin Tech development on the profitability of commercial banks’ investment business is negative first and then positive,and the impact on the profitability of intermediary business is not obvious;And the heterogeneity test analysis confirmed that all kinds of com mercial banks are affected by Fin Tech to varying degrees.Due to the differences in the strength and scale of all kinds of banks,they face different markets and target customer groups.Large and medium-sized commercial banks are more likely to be affected by Fin Tech than small urban commercial banks.Therefore,commercial banks should face the challenges of the digital era,make use of Fin Tech to carry out targeted development,improve information and integrated service functions,strengthen the cross inte gration of "finance" and "technology",turn inhibition into promotion,and give full play to the role of Fin Tech.