Impact Of Third-party Payments On Profitability Of Commercial Banks

The continuous progress and innovation of science and technology is a powerful exogenous force to promote economic development.With the rapid development of Internet technology in China,the third-party payment industry has grown rapidly and gradually matured.With the rapid development of third-party payment,the traditional business of commercial banks is inevitably impacted.There are some business overlaps between them,which makes the competition between the two sides increasingly fierce.Faced with the impact and suppression of these emerging forces,commercial banks inevitably appear to be left-handed in the short term,and the extent to which such impact will have an impact on commercial banks remains to be considered.Therefore,it is of great theoretical value and practical significance to analyze the impact of third-party payment on commercial banks through theoretical and empirical analysis.Firstly,this paper expounds the development process of third-party payment and its impact on commercial banks.Subsequently,the paper theoretically analyses the impact of third-party payment on traditional business,intermediary business and customer flow of commercial banks.It is not difficult to see that third-party payment has a negative effect on the traditional business of commercial banks.For example,through relatively high-yielding platforms such as Europa,the source of bank funds is diverted.Providing loans for the development of some small and medium-sized enterprises,thus robbing banks of market share in loans,and increasing bank operating costs.At the same time,third-party payment companies rely on their convenient payment methods,attracting a large number of customers,and absorbing some of the customers of commercial banks.Next,this paper builds an econometric model to analyze.This paper takes the return on total assets as the explanatory variable,the scale of third-party payment as the explanatory variable,and six variables of total bank assets,cost-income ratio,non-performing loan ratio,capital adequacy ratio,non-interest income ratio and GDP growth rate as the control variable to construct the panel data model.According to the regression analysis,the third-partypayment has a significant negative effect on commercial banks,which is also consistent with the theoretical analysis.In view of the impact of third-party payment and the development of science and technology,commercial banks have to adapt to the changes of the times and seek new development space,so as to innovate.Next,this paper analyses the innovation of commercial banks in products and services.Finally,this paper elaborates on how commercial banks can develop steadily under the requirements of the new regulations and puts forward some countermeasures and suggestions.