Research On The Impact Of Fintech On The Intermediate Business Of Commercial Banks

In recent years,fintech is affecting the financial order with the development trend of technology,data and scenario.As the largest financial institution,commercial banks have encountered many challenges in this process.Their asset business,liability business and intermediary business have been hit,especially in the field of intermediary business.Third-party payment,Internet wealth management and other institutions are competing with banks.The development of fintech has simultaneously produced a substitution effect and a technology spillover effect on the intermediary business of banks,and China's commercial banks are in the transformation stage,and the intermediary business is also an important direction of commercial banking business transformation.Therefore,the relationship of the intermediary business of commercial banks and fintech is worth exploring.In this thesis,we study the relationship between fintech and commercial banks'intermediary business.First,we sort out the relevant literature,and summarize the domestic and foreign research on fintech,commercial bank intermediary business,and the relationship between them.Secondly,from the perspective of the competitive relationship between fintech and commercial banks' intermediary business,the theoretical analysis of the substitution effect and technological spillover effect of fintech development on commercial banks' intermediary business,and the mechanism of fintech's impact on commercial banks' intermediary business are explained.Next this thesis analyzes the path of fintech's impact on commercial banks' intermediary business through net interest margin,and makes assumptions based on the above analysis.In empirical terms,this thesis uses the annual report data of 46 listed banks from 2011 to 2018 and the provincial-level digital inclusive financial index constructed by the Peking University Digital Finance Research Center.Using a two-way fixed effect model and an intermediary effect test model to study the impact of fintech on the intermediate business of commercial banks.The study finds that the development of fintech has a significant negative impact on the proportion of commercial banks'intermediary business revenue,which hinders the development of commercial banks'intermediary business.At the same time,this impact is heterogeneous.The larger bank suffers smaller impact.Local banks are the most affected,followed by joint-stock banks,and the impact of fintech on state-owned banks is not significant.The intermediary effect test on the net interest margin shows that in the path where fintech affects the net interest margin and thus the intermediate business,the net interest margin plays a suppressing effect rather than an intermediary effect.If we control the variable of net interest margin,the negative effect on the intermediate business will be greater.This effect mainly exists in local banks,and it does not exist in state-owned commercial banks and joint-stock banks.Therefore,commercial banks,especially local banks,should pay more attention to cooperation with fintech,and use their own advantages to develop intermediate business to promote the positive coordinated development of net interest margin and intermediate business.