Research On Market Value And Impact Of Fintech Innovation Based On Patent Data

Fintech has become the new "buzzword" of financial development.The community has shown great enthusiasm for the development of fintech.The application of science and technology in finance has become the main trend of financial development.Past studies have suggested that fintech has both technological and financial advantages,but fintech is a "double-edged sword",the new generation of information technologies represented by artificial intelligence,blockchain,cloud computing and big data are developing rapidly,widely used in human economic and social activities.It has created a series of new business models,applications and products,which have a significant impact on financial markets,financial institutions and financial services.Traditional finance and emerging finance continue to innovate and cooperate in the process of developing fintech.In the future,fintech may unlock more potential to improve the efficiency of financial markets and create value returns.However,the development of fintech may have a disruptive impact on the financial market,strongly impacting the original financial structure,business model and financial regulation.It may lead to a series of financial risks.In this realistic environment,the innovation value and impact of fintech has become an important topic of academic and government departments.At present,China's fintech development has taken the lead in the world.The huge market demand has provided huge development potential for China's fintech development.However,a review of the global fintech development shows that China's core technology competitiveness and industry supervision level still need to be improved.The Chinese government is actively promoting scientific and technological innovation to improve the efficiency of the modern financial system,thus improving the ability of the financial sector to serve the real economy.How to formulate the fintech innovation and development strategy in line with China's financial market is a major challenge at the present stage.The key technology innovation of fintech is the original driving force of the development of fintech.So what are the key technologies of China's fintech innovation? Does Fin Tech Innovation Create Economic Value? Will fintech innovation have a disruptive impact on financial institutions and the financial services industry? The analysis of these problems is helpful to understand the characteristics of China's fintech innovation and development,clarify the reasons for the formation of the market value of fintech innovation,and formulate a development strategy for the rational use of fintech in China in the future.It is of great significance to promote the healthy and sustainable development of fintech.Since the definition of fintech has not been unified at present,this paper conducts text mining on patent application information and constructs China's fintech innovation database.The key technologies of China's fintech innovation are defined and classified by quantitative research method.Further,based on the innovation value chain theory,the market value of fintech innovation is divided into the generation stage(short term)and the diffusion stage(long term).This paper empirically analyzes the market value performance of each stage of fintech innovation and the disruptive impact of fintech innovation on the financial market.In view of the above problems,this paper mainly carries out research from the following four aspects:First,this paper excavates the patent text information in depth.Using machine learning models to classify and define fintech,building a database of fintech innovation and then analyze the development characteristics of China's fintech innovation.The results show that :(1)China's fintech innovation patents can be divided into 6 categories according to key technologies,including cyber security,mobile transaction,data analytics,blockchain,artificial intelligence and the Internet of Things.The number of innovations in cyber security and blockchain types is the highest;(2)From the perspective of the type of innovator,other companies(non-listed companies)have the largest number of fintech innovations;(3)From the perspective of innovative business applications,the number of innovations in diversified finance and banking industry is relatively large;(4)From the perspective of innovation trend,China's fintech innovation patents have continued to grow rapidly since 2010.Fintech innovation patents were filed the most in 2018.In addition,non-financial companies dominate China's fintech innovation;(5)Fintech patents were further divided into payment and settlement,deposit and capital raising,investment management and market facilities according to service business.The results showed that the largest number of fintech innovations were applied to market facilities.Second,this paper studies the short-term market value of fintech innovation from the perspective of the stock market response,and estimates the innovation value by combining the stock price response with the estimated strength of the number of patent applications.The results show that:(1)From the perspective of the company,listed companies improve their market value by relying on fintech innovation patent application,and fintech innovation is more conducive to value improvement than non-fintech financial innovation.The highest value of innovation is data analysis and artificial intelligence;(2)From the perspective of industry,the following results are found: Artificial intelligence,Internet of things,and data analysis play a significant role in enhancing the value of the entire financial industry.But other categories of fintech innovation have a negative impact on industry value.This means that fintech innovation could be disruptive.When considering the impact of each fintech category on the financial sector,we found that most of the innovation categories had opposite effects on different financial sectors.(3)We study which key technologies the value of fintech innovation is more dependent on,and we find that blockchain is the most valuable innovation category.In general,fintech innovation technologies have short-term market value to innovators and the financial industry.In the future,each financial industry should strengthen the rational application of fintech innovation according to its own business,so as to maximize the innovation value.Third,this paper studies the short-term market value of fintech innovation from the perspective of disruptive innovation.The results show that:(1)when innovation comes from fintech startups and the innovative technology is disruptive,it has a very negative impact on industry value;(2)Disruptive innovation of Fintech startups does little harm to the value of market share leaders in the financial industry.Market share leaders in the financial industry can reduce the value loss caused by disruptive innovation of fintech startups by investing more in innovation.(3)Fintech startups have a greater impact on industry value than fintech leaders.As a result,China needs to pay special attention to the risks posed by fintech startups and disruptive innovations in future fintech development.Fourth,this paper evaluates the long-term market value of fintech innovation from the perspective of financial system efficiency represented by bank efficiency.The results show that :(1)Fintech innovation improves the efficiency of banks,indicating that the long-term market value of Fintech innovation is positive.(2)Fintech innovation improves the degree of competition of banks,and the increase of the degree of competition of banks will weaken the effect of Fintech innovation on the improvement of bank efficiency.(3)The impact of financial technology innovation on bank efficiency is heterogeneous.In contrast,the efficiency of small and medium-sized commercial banks and commercial banks in eastern China is greatly affected by financial technology innovation.In conclusion,fintech innovation realizes its innovation value by improving the efficiency of financial markets.However,it is necessary to pay attention to the negative impact of market competition structure changes on market efficiency in the future development of fintech innovation.Now,China's fintech innovation is booming,and fintech has been widely infiltrated into the financial market.Fintech will have a broader impact on China's financial and economic development in the future.The relevant conclusions of this paper indicate that China's fintech innovation has economic value both in the short term and in the long term.But in the short term there's a threat from fintech startups and disruptive innovation to consider.Long-term development needs to pay attention to the negative impact of market competition structure changes.Finally,this paper puts forward some policy suggestions.