A Theoretical And Empirical Analysis Of The Impact Of Fintech On The Operation Of Commercial Banks

In recent years,Fintech is increasingly affecting future financial order by growing towards technology,data and scene-oriented,with certain opportunities and challenges presented to commercial banks.Based upon this,this paper focuses on theoretical investigation and empirical analysis of impacts of Fintech on commercial banks.Firstly,this paper makes a literal review of relevant researches on fintech and its impact on commercial banks.Most researches mainly expound the opportunities and challenges brought by fintech to commercial banks from the theoretical level,but the theoretical and empirical analysis on the interaction between fintech and commercial banks still has not been carried out in depth.Secondly,the paper empirically explore the development differences of China's regional fintech from the perspective of geographical distance and government intervention.And then spatial characteristics of Fintech development is examined based on spatial econometric model.It shows that spatial agglomeration effect can be found in China's Fintech development,mainly characterized by high-high concentration and low-low concentration.And this spatial spillover effect is still strong after controlling for economic variables.Besides,government intervention has played an indispensable role in promoting the development of Fintech in central and western regions,but in the long run it may not be conducive to the sustained and healthy development of Fintech.Thirdly,the cooperation-competition interaction between Fintech enterprises and commercial banks is explored on the basis of Hotelling game model,Stackelberg game model and evolutionary game model under bounded rationality.It can be concluded,through the analysis of competition-oriented game,commercial banks will take corresponding measures to restrict the development of Fintech companies.It can also be found through the analysis of cooperation-oriented game that long-term cooperation between the two parties cannot be achieved without a appropriate proportion of profit distribution.The evolutionary stability strategy is bound up with several factors including their respective monopoly advantages,cooperative profits and profit distribution ratio,punishment intensity for breach of contract,and cost gap before and after cooperation.Finally,the impacts of Fintech on operation and management of commercialbanks are empirically analysed from the perspective of asset-liability structure of commercial banks,risk-taking level,total factor productivity.It should be noted that Fintech has a certain diversion effect on the liability structure of commercial banks.To compensate for the increase in the cost of liabilities,commercial banks have chosen assets that can bring more benefits but are more risky,rather than passed on the rising cost of liabilities to downstream enterprises.At the initial stage of Fintech development,the risk-taking level of commercial banks is reduced,and then it is increaed.Compared to large commercial banks,small and medium-sized commercial banks are relatively more sensitive.The development of Fintech has accelerated the process of interest rate liberalization,intensified the price competition of commercial banks,and further pushed up the risk-taking level of commercial banks.Fintech has a significant role in promoting the total factor productivity of commercial banks,and the most obvious impact is demonstrated on the technological progress of commercial banks.Commercial banks of different natures have different responses to Fintech spillovers.Generally speaking,systemically important banks respond relatively slowly,while non-systemically important banks respond more quickly and show greater adaptability.In light of aforesaid conclusions,this paper proposes two points: for one thing,it is necessary for governmets to provide well-targeted and guidance for Fintech progress in a reasonable manner and strengthen the regulation of financial science and technology;for another,commercial banks shold feel obliged to actively respond to the impact of Fintech and integrate with Fintech in an appropriate way.