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

At present,Chinese commercial banks take financial technology as a development strategy and establish a user-centered financial technology management system.Strengthen the capital investment in financial technology,improve the reserve of financial technicians,and promote the transformation of banks to intelligent and electronic.Firstly,this thesis combs the relevant literature at home and abroad,and analyzes the characteristics and current situation of different stages of financial technology development.Based on the previous theoretical research,this paper studies a series of problems in the application of financial technology in China’s current commercial banks based on financial disintermediation theory,banking system crisis theory and functional finance theory.At the same time,according to the arrival time of the financial technology era,this paper selects the data from 2011 to 2020 for analysis,and selects the relevant data of 32 Chinese listed commercial banks.Because there is no unified measurement standard for the development of financial technology at home and abroad,this paper combines the digital inclusive financial index of Peking University with the asset proportion of commercial banks in all provinces to calculate the financial technology index.In terms of explained variables,this paper takes the total factor productivity(TFP)calculated by DEA Data Envelopment method as an index to measure the profitability of commercial banks.Seven indicators are selected as the control variables: the total asset size(SIZE),the non-performing loan ratio(NPL),the proportion of non interest income(NII),the capital adequacy ratio(CAR),the liquidity level(LDR),the M2 growth rate and the GDP growth rate.Then,build a dynamic GMM model to make an empirical study on the impact of the application of financial technology on the profitability of China’s commercial banks.The robustness of the results is verified by changing the explained variables and changing the estimation methods.Through literature and empirical research,it is found that financial technology has a significant positive impact on the total factor productivity(TFP)of commercial banks,that is,commercial banks can improve their profitability through the application of financial technology.At the end of this paper,combined with the analysis of the empirical conclusions,this paper puts forward some suggestions on how to develop financial technology and how to better apply financial technology.