Research On The Impact Of Fintech On The Profitability Of Commercial Banks In China

Since 2017,the world has officially entered the era of fintech 3.0,and it is also the era where the main business card is "smart finance,smart finance".As of the beginning of2020,China's fintech utilization rate has ranked first in the world,and the application rate of fintech in various fields has reached 69%,far exceeding the 33% application rate in the United States.However,as financial technology continues to update and promote the transformation and upgrading of commercial banks,it will also have an impact on its traditional profitable businesses.In order to explore the nature and scope of financial technology's impact on the profitability of commercial banks,this paper analyzes the theory and empirical aspects:First,based on the status quo of financial technology's impact on the profitability of China's commercial banks and its impact mechanism,the nature of financial technology's impact on the profitability of commercial banks is analyzed,and three research hypotheses are proposed through theoretical analysis.Secondly,use the panel data of three types of 24 commercial banks from 2010 to 2018 to estimate the model,test the research hypothesis,and draw a regression analysis conclusion: First,the relationship between fintech and commercial bank profitability shows a decrease first and then increase U-shaped change trend.In the early stages of the development of fintech,the first thing commercial banks faced was the impact of the business of innovative fintech companies.These companies will squeeze the business market of traditional commercial banks,thereby reducing their profitability.However,it is impossible for China's commercial banks to "defense" blindly,and accelerating the pace of technological integration in a steady and orderly manner is the top priority.Whether adopting independent innovation methods or adopting cooperation with fintech companies to achieve a win-win situation,China's commercial banks will vigorously "embracing" fintech,exert its positive effects,and increase profitability.Second,there are certain differences in the effects of financial technology on different types of commercial banks.According to the sensitivity to the impact of the development of financial technology from small to large,they are state-owned banks,joint-stock banks,and urban commercial banks.State-owned banks can better cope with the impact of the development of fintech by virtue of their unique advantages in terms of asset scale;joint-stock banks adopt a more commercial operating model,so they are affected by the impact of external fintech development Smaller;city commercial banks are seized byfintech companies,which affects their profitability.At the same time,with the development of fintech,fintech has made the largest increase in the profitability of state-owned banks,followed by city commercial banks,and joint-stock banks ranked last.This is because the existing operating system of state-owned banks is too old,and the development of financial technology makes it have greater room for improvement;through fierce competition with financial technology companies,urban commercial banks will definitely improve their business level and innovation ability,thus integrating financial technology Improve profitability;the operating philosophy of joint-stock banks giving priority to serving large customers seriously hinders their integration with fintech and is not conducive to the improvement of profitability.Based on the above conclusions,this article puts forward suggestions on specific issues,so as to promote the active transformation and development of commercial banks in the context of financial technology to achieve the purpose of improving profitability.