Research On The Impact Of Digital Inclusive Finance On The Efficiency Of China’s Banks

Digital Inclusive Finance not only affects the types of financial products or services it provides,but also affects how it uses digital technology to improve people’s access to financial services.With the rapid development of digital Inclusive Finance in recent years,the traditional financial business of China’s commercial banks is facing severe challenges in product innovation,cost control and customer acquisition channels.Under the guidance of the government’s macro strategy of vigorously developing digital economy,more and more domestic banks have incorporated digital transformation into their strategic objectives to seek to improve bank efficiency.In this context,from the perspective of the development of digital Inclusive Finance,this paper explores its impact on the efficiency level of China’s commercial banks and its mechanism.Based on the theoretical analysis and the operation and management index data of 31 commercial banks in China from 2012 to 2020,this paper empirically tests the impact of digital Inclusive Finance on the efficiency of commercial banks by using the digital Inclusive Finance Development Index of Peking University.The Malmquist index model is used to measure the total factor productivity of banks,and the fixed effect model is used for regression analysis.It is found that the development of digital Inclusive Finance has a positive impact on the efficiency of commercial banks,which is mainly reflected in the technological progress of commercial banks.After the robustness test,this paper also carried out heterogeneity analysis and mechanism test.It is found that the development of digital Inclusive Finance has a heterogeneous impact on the efficiency of commercial banks in different types and regions,and can improve the efficiency of commercial banks by stimulating the financial business innovation and digital innovation of commercial banks.The suggestions of this paper to China’s commercial banks include encouraging financial business innovation and accelerating the digital strategic transformation of commercial banks.In the process of digital transformation,we should pay attention to strengthening the construction of digital channels of commercial banks,and actively prepare to establish a digital risk control system while improving the construction of digital channels to win customers.This paper is helpful to expand ideas and directions for the research of bank efficiency in China under the social background of the rapid development of digital Inclusive Finance,and provide targeted and innovative thinking and suggestions for the improvement of bank efficiency.