Research On The Influence Of Digital Inclusive Finance On Profitability Of Commercial Banks

Commercial banks occupy the pillar position in our financial system,which is the core of financial system.In the process of developing inclusive finance,commercial banks have invested large amounts of resources in response to national policies.However,it is precisely because of its core position that banks strictly control risks when carrying out inclusive financial services in order to prevent the occurrence of systemic risks.Most small and micro enterprises and people in need of financial resources are excluded from the financial system due to their inadequate guarantee ability or lack of credit data.Although the state has introduced a number of policies,it cannot fundamentally solve the problem of commercial banks’ "daring to lend","willing to lend" and "able to lend".In recent years,emerging technologies such as "5G+ABCDI" have been well integrated into the development of the financial industry,changing the traditional financial service model and business process.The organic integration of fintech and inclusive finance promotes the emergence of digital inclusive finance.With its features of wide service range,multiple service fields,low service cost and easing information asymmetry,digital inclusive finance breaks through the constraints of time and space,promotes information sharing within and between industries,reduces the risks of inclusive finance business,creates equal opportunities for the distribution of financial resources in different regions,and comprehensively improves the quality and efficiency of financial service entities.But at the same time,the digital transformation of inclusive finance business of commercial banks brings new risks.Based on the above background,this paper sorts out the literature related to digital inclusive finance and the profitability of commercial banks,analyzes the shortcomings of the existing literature,finds the entry point for research,sorts out the development status of digital inclusive finance of large,medium and small banks in China,and analyzes the impact mechanism of digital inclusive finance of commercial banks on their profitability based on relevant theoretical foundations.In terms of empirical evidence,this paper selects the balance panel data of 19 listed commercial banks from 2017 to 2021,selects5 dimensions and 10 indicators from the bank level to construct a comprehensive evaluation system of digital inclusive finance for commercial banks,and discusses the impact of digital inclusive finance of commercial banks on their profitability.The results are as follows:(1)The development of digital inclusive finance by commercial banks can significantly improve their profitability,and the degree of human support,coverage and availability will all bring significant positive effects on the profitability of commercial banks,while the positive effects of depth of use and digitalization are not significant;(2)From the perspective of intermediary effect,digital inclusive finance can significantly increase the net interest margin of commercial banks,reduce the non-performing loan ratio,and thus improve their profitability;(3)From the perspective of different types,the development of digital inclusive finance by state-owned banks has a negative impact on their profitability,but it does not have a significant time trend;The development of digital inclusive finance by joint-stock banks and city commercial banks has a significant positive effect on their profitability,and has a significant time trend.Based on the results of theoretical mechanism analysis and empirical testing,the following policy suggestions are put forward: the government should improve financial supervision and strengthen risk prevention;Strengthen publicity and build channels for appeals;Establish a diversified credit reporting system.Commercial banks should build a mutually beneficial and win-win digital inclusive financial ecosystem,promote intelligent transformation of data processing and risk prevention,and different types of commercial banks should find a development direction that suits them.