Research On The Impact Of Fintech On The Performance Of China’s Commercial Banks

In recent years,computer information technology has achieved unprecedented development.Big data and Cloud computing are in full swing in various fields.At the same time,the financial industry is undergoing a new round of industrial transformation,and the huge market demand and the grounding of cutting-edge technology meet unexpectedly,providing fertile soil for the vigorous development of Fintech.The upgrading and reconstruction of financial ecology also puts forward new requirements for commercial banks as an important part of the financial market.On the one hand,the crowding-out effect of Fintech is reflected in the fact that technological innovation intensifies the competition between non-bank enterprises and commercial banks in financial business,and runs out the original business shares of some banks.On the other hand,the technology spillover effect of Fintech is reflected in the use of Fintech reform and transformation by commercial banks to break through the traditional business model and improve bank efficiency.In this environment,how to realize the smooth transformation of China’s commercial banks and deal with the risks and opportunities in the wave of Fintech revolution are urgent problems that need to be solved.From the perspective of theoretical mechanism and empirical analysis,this paper sorts out the internal mechanism and specific relationship between the two.First of all,this paper summarizes the relevant research,analyzes the impact mechanism of Fintech on the performance of commercial banks from the perspective of basic economic theory,and establishes a theoretical analysis framework based on the development status of Fintech and commercial banks.Secondly,considering the unbalanced development of Fintech among regions in China,in order to effectively reflect the level of Fintech in the environment of commercial banks,this paper calculates a comprehensive index to measure the development level of Fintech by using the number of branches of banks in all provinces and autonomous regions and weighting the Digital Inclusive financial index of Peking University.Using the generalized model of moments(GMM),this paper empirically analyzes the financial data of 33 commercial banks in China from 2011 to2020.Considering the changes in the impact of commercial banks with the improvement of the development level of Fintech,this paper further adopts a piecewise regression analysis according to the development of Fintech,and discusses the heterogeneity of the impact of Fintech on the performance of different types of commercial banks.The research shows that Fintech has a negative impact on the performance of commercial banks on the whole through the crowding out effect,but this effect will show a nonlinear relationship of first inhibition and then promotion with the development of Fintech level.For different types of commercial banks,city commercial banks are the most sensitive to the impact of Fintech,followed by joint-stock commercial banks,and stateowned commercial banks are the least affected.Compared with small-scale commercial banks,large-scale commercial banks show better absorption capacity to the impact of Fintech.Finally,combined with the conclusions of this paper,it provides policy suggestions for commercial banks to grasp new opportunities in the development of Fintech.