Research Of The Impact Of Financial Technology Development On Physical Outlets Of Commercial Banks

Commercial bank physical outlets are the foundation of banks,and the development of many outlets is related to the overall development of a commercial bank.In the environment of continuous development of fintech,many internet financial companies have spawned and new financial formats have been produced,so the scale of commercial banks outlets is squeezed.In this context,this article conducts theoretical and physical research of the impact of fintech companies on the influence of commercial banks.The research methods and conclusions are as follows:(1)Financial technology is boomingly developed in China.The financial services provided by Internet financial companies,represented by Alipay,are becoming more and more diversified.Especially affected by global epidemic conditions,online services become trending and commercial bank outlets are losing competitiveness and the original customer base is diverted.(2)In this article,the financial technology development index of 31 provinces,autonomous regions and municipalities(excluding Hong Kong,Macao and Taiwan)from 2011 to 2020 is analyzed by the changes in the number of outlets of 53 commercial banks,and the increase in the number of commercial bank outlets as the explanatory variable,the development level of fintech as the core explanatory variable,and the spherical distance from Hangzhou as a instrumental variable,using the instrumental variable to regression analysis the number of business banks’ outlets that affected by the fintech developments.After research,with the continuous improvement of fintech developments,the increase in the number of commercial banks will gradually decrease,and the scale of commercial banks will shrink.(3)The types and scales of commercial banks in China are different.Through the regression analysis of national commercial banks and regional commercial banks,conclusion is that the increase of commercial banks outlets varied in different scale which affected by fintech.The national commercial banks are more influenced by fintech.(4)Although the development of fintech affects the commerci al bank outlets,it has also accelerated the transformation and development of commercial banks.Traditional banking business applies fintech to improve efficiency and create performance and scales,refine management,provide considerate services.Internet oriented innovation of financial products are providing more convenient financial services.Compared with previous documents,the contribution of this article lies in the perspective of commercial banks that people have not involved in the past,counting the regional physical outlets of various regional banks changed in 2011-2020,and studying the relationship between fintech and commercial banks.Analysis of tool variables(distance from Hangzhou sphere)to reduce endogenous problems of fintech levels,and stable results through test results.It is confirmed that the development of fintech will cause the bank’s physical outlets to shrink the scale,and the path of the transformation of the physical outlets of commercial banks are studied in this context.