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

In the era of financial technology 3.0,Internet financial companies and financial technology companies appear blowout development under the background of rapid development of digital technology.Financial technology companies represented by big data and artificial intelligence upgrade their customer experience with the prominent advantages of high efficiency and low cost,and quickly seize the financial market,and new business models such as P2 P network loans and third-party payments are diverted.The traditional commercial bank has a large number of original customers,which has brought great impact on the operational efficiency of the commercial bank.As an important role in the financial industry,commercial banks,a traditional financial institution,always play an important role in the development of China’s financial industry.While the development and application of financial technology challenge the traditional role of commercial banks in the financial industry,it also brings new vitality to them.On the one hand,the main profit model of commercial banks in China is still net interest income.Digital technology such as cloud computing and artificial intelligence not only reduces the business expenses of commercial banks,but also expands the business scope of banks and adds new profit points.On the other hand,with the development and application of financial technology,commercial banks are constantly innovating the profit model,especially for traditional businesses.It is to upgrade the service mode of intermediate business effectively,to further increase the profit space of commercial banks,and then to improve the profitability of commercial banks and maintain their important role in the financial industry.This paper creatively excavates the annual reports of 30 representative commercial banks,constructs the variable of financial technology,makes empirical research using panel data,and uses the method of combining theoretical analysis and empirical research to study the impact of financial technology investment on the profitability of commercial banks.Firstly,by studying the literature,this paper briefly summarizes the current research status of the impact of financial technology on commercial banks,and expounds the relevant theories of the relationship between financial technology and commercial banks,so as to provide a theoretical basis for empirical research.Secondly,this paper introduces the development and application status of financial technology in detail,describes the new development opportunities brought by financial technology to the current profit model of commercial banks,and studies and analyzes the problems and characteristics of its profit structure.Then,this paper demonstrates the mechanism of the impact of financial technology investment on bank profitability,establishes a mathematical model,uses the relevant data of 30A-share listed commercial banks from 2007 to 2019 as research samples for empirical research,and analyzes the positive effects of financial technology by reducing bank operating costs and optimizing the allocation of bank resources The path to significantly improve the profitability of banks,as well as the change relationship between the marginal amount of the impact of financial technology on the development of bank efficiency and financial technology,and then deduce the heterogeneous impact of financial technology on commercial banks by type and stage.Through research,this paper suggests that commercial banks should pay attention to and increase financial technology investment,improve their financial technology innovation ability,formulate the optimal development path in line with their own characteristics,and explore the effective cooperation mode with financial technology companies.