The Fintech To The Impacts Of Commercial Bank Profitability

Commercial banks are the mainstay of our country’s financial industry and the backbone of our national economic activity.In the early days,the main business of commercial banks was deposits and loans.They absorbed deposits at a lower interest rate and issued loans at a higher interest rate,taking the margin between deposit and loan rates as their profit growth point.However,with the increasingly fierce competition among commercial banks,the increasing space of interest income of commercial banks is gradually shrinking,which makes commercial banks have to change the profit growth point from interest income to non-interest income.At present,the non-interest income of commercial banks mainly includes processing business income,transaction business income and consulting business income.Among the three,commercial banks focus on the income of processing business,such as checking business,fund transfer business,letter of credit collection business,etc.We can say that our commercial banks have a single non-interest income channel.How to improve the profitability of commercial banks? Starting from the application of Fintech by commercial banks,this paper studies how the profitability of commercial banks is affected by the development of Fintech.The research ideas of this paper are as follows: relevant theoretical analysis--development status analysis--empirical data analysis--research conclusions and suggestions.This paper firstly summarizes the current research results at home and abroad from the perspectives of fintech itself,its influence on banks and the model of bank profitability,and puts forward the future development trend.Then,it focuses on the development of the current financial technology and studies its application in commercial banks.Combined with theoretical analysis,statistical analysis and empirical analysis,in-depth research on the topic of this paper.Through the Long tail theory,80/20 law,Coase theorem,financial disintermediation theory,platform economy theory and other financial technologies on the impact of commercial banks.On this basis,combined with the Peking University Digital inclusive finance Index and various indicators of the banking industry at the macro level,this paper theoretically discusses and statistically speculates on the operational efficiency and risk management of Chinese commercial banks.This paper collects the data of Chinese commercial banks from 2012 to 2021 as observation samples to establish a layout model,and empirically studies the influence of financial technology development on the profit effect of Chinese commercial banks.This paper further divides the sample banks into three sub-samples according to the source of funds to study the heterogeneity of the impact of the development of fintech on banks of different natures.Conclusion: Stimulated by new Fintech,commercial banks will not only increase R&D investment,but also purchase advanced technologies from Fintech enterprises to help them actively carry out technological innovation,management upgrade and product innovation,so as to improve cost efficiency and financial service technology.In addition,the new technology and management mode have a demonstrable impact on the products,technical services,production processes and organizational forms of commercial banks,and to a certain extent,improve the profitability of commercial banks.For other control variables,it is found that bank Size has a significant positive impact on the profitability and technology of commercial banks,while asset-liability ratio Lev and deposit growth rate Depositer have a significant negative impact.Fintech can improve the return on assets(ROA)of commercial banks by reducing the non-performing loan ratio(NPL)of the intermediary variable and the cost.