A Study On The Efficiency Of Fintech Inputs And Outputs Of Commercial Banks

In recent years,the digital wave is booming,the development of digital economy has entered the fast lane,and promoting digital transformation has become a commonchoice for the financial industry to improve its service level and competitiveness.The accelerated entry of fintech into the banking industry has become an important driving force for the digital transformation of banks,which is of great significance to the reshaping of the financial system and the improvement of the quality and efficiency of banking institutions.Currently,banks are vigorously developing fintech and continue to increase their investment in fintech.Data shows that in 2021,22 domestic listed banks disclosed a total of RMB 168.132 billion in fintech investment costs,an increase of 22.93%year-on-year.In the face of the increasing investment in fintech,how can its efficiency be evaluated?How does the efficiency of different types of banks differ?These questions have received increasing attention from academics.Based on the above questions,this paper conducts a theoretical and empirical study on the evaluation of the efficiency of fintech inputs and outputs of commercial banks in the context of digital transformation.In terms of theory,this paper reviews the definition and connotation of FinTech,its motivation and classification,risks and regulation,as well as the research on the impact of FinTech on the traditional business,risk-taking and operational efficiency of commercial banks;composes efficiency-related theories,introduces the methods of efficiency measurement,and constructs an index system for the efficiency of FinTech inputs and outputs of commercial banks.Also introduces the reason for choosing the three-stage DEA method in this paper,and the meanings represented by each indicator are also explained.In terms of empirical evidence,this paper takes commercial banks’ fintech inputs as the research perspective and their input-output efficiency as the research direction,and evaluates the efficiency of commercial banks’ fintech inputs and outputs by constructing a three-stage DEA model.Based on the empirical analysis,this paper draws the following conclusions:the overall level of fintech input-output efficiency of commercial banks in China needs to be improved;there are large differences in fintech input-output efficiency of banks of different scale;environmental factors have different degrees of influence on fintech input-output efficiency of banks of different scale.Finally,based on the empirical results,countermeasures are proposed at the level of bank development and national policy:commercial banks should strategically elevate the development of fintech to a bank-wide level;commercial banks need to leverage their comparative advantages and choose differentiated digital transformation paths;commercial banks should fully integrate the external environment such as economic development and financial ecology of their regions in their operations;government departments should strengthen the construction of digital economy infrastructure and expand the training and supply of high-quality fintech talents to create a favourable external environment for the development of fintech in China’s banking industry.