Research On The Cost Effect Of Financial Technology Development In Commercial Banks

Financial technology is the product of the deep combination of finance and technology.It refers to the technological innovation means to use advanced technical means to innovate the products and services of the traditional financial industry,so as to reduce transaction costs,improve efficiency,prevent risks and other purposes.Under the background that financial science and technology reform and digital transformation have become the key development goals of major commercial banks in the world,China is also vigorously promoting the digital construction of commercial banks.The People’s Bank of China has issued a number of national development plans represented by the Financial Technology Development Plan(2022-2025),which symbolizes that the financial technology development of China’s commercial banks has entered a new stage.China’s commercial banks are a huge group in the domestic financial market,and the economic volume twice of China’s GDP shows that commercial banks are an extremely important part of China’s economic operation system.Therefore,it is of great significance to explore the impact of the development of financial technology on commercial banks.In the "post epidemic" period,economic development slowed down,and the world entered the era of low interest rates.In the face of domestic financial technology companies with financial licenses fighting a "price war",commercial banks must face the fact that the yield has decreased.Therefore,commercial banks began to turn their business objectives to internal management,and ensured profit margins by controlling costs.At the same time,the existing cost accounting system of commercial banks also has many problems,such as extensive cost management methods,difficult to unify cost accounting caliber and incomplete cost accounting among various departments,which increase the difficulty of cost control of commercial banks.The development of financial technology provides new ideas to solve these problems.Whether it is the need for commercial banks to carry out cost management due to the severe external economic environment or the problems existing in the internal cost control of commercial banks,it is of great research value to explore the impact of financial technology on the cost of commercial banks.In previous literature studies,experts and scholars at home and abroad focused on the impact of financial technology on the performance and risk of commercial banks,and made rich research results.These studies focus on the impact of financial technology on the profitability and security of commercial banks,but few literatures take the cost of commercial banks as the research object to explore the cost effect of financial technology on commercial banks.On the basis of previous studies,this paper will further study the impact of financial technology on the cost effect of commercial banks,and subdivide the cost of commercial banks into cost efficiency and cost structure.By subdividing cost indicators,we will further explore the mechanism of the role of financial technology on costs.In order to study the impact of financial technology on the cost efficiency of commercial banks,this paper first obtains data from the annual reports of commercial banks,uses the Luenberger productivity index to measure the cost efficiency of 59 commercial banks in China,and then uses the two-way fixed effect model to regression,and obtains the following results: 1.The development of financial technology has a significant positive effect on the cost efficiency of commercial banks,And the effect of small and medium-sized commercial banks is the most obvious.2 、 After financial technology is subdivided into core bottom technology,the payment settlement and wealth management functions,which are the most mature through the development of financial technology,have the most obvious effect on improving the cost efficiency of commercial banks,and the Internet and cloud computing technologies have also made positive contributions.After completing the regression of financial technology and cost efficiency of commercial banks,this paper further explores the impact of financial technology on the cost structure of commercial banks.In order to ensure the consistency and comparability of data,this paper continues to use the data of 59 commercial banks in China to construct the human cost structure and material cost structure of commercial banks,and conducts regression analysis.The regression results show that: 1.The development of financial technology has increased the human cost structure and material cost structure of commercial banks,which shows that China’s commercial banks are still in the initial stage of financial technology development,The introduction of financial science and technology talents and the purchase of high-tech equipment are still under way.At this time,the cost structure pressure brought by financial science and technology is greater than the relief of financial science and technology on the cost structure of repetitive and low value businesses.2、 Commercial banks have focused on the development of financial technology on artificial intelligence technology,and "replacing artificial with intelligent AI" may become the trend of digital transformation in the future.At the end of the paper,based on the results of empirical analysis,this paper gives several suggestions for the problems that commercial banks should pay attention to when developing financial technology: first,commercial banks should pay attention to the comprehensive development of technology,talents and equipment when developing financial technology,and should not "focus on science" development;Secondly,using financial technology as a means to solve the current problems of commercial banks in cost management and improve the cost management system of commercial banks;Finally,we should do a good job of cost planning for the development of financial technology,control the development speed and scale within the scope of our own affordability,and avoid being penny wise and pound foolish.