The Impact Of Fintech On The Profitability Of Listed Commercial Banks

At present,in the new era when China’s economy is turning to high-quality development,the expansion of technology has injected new vitality into the financial ecosystem.With the continuous deepening of the application of information technology such as AI,big data,block-chain,and the continuous integration of financial innovation and scientific and technological development,the role of science and technology in serving the real economy has become increasingly significant.As an important part of China’s financial industry,listed commercial banks need to improve their financial technology level,so as to improve their profitability and better serve the real economy.In January 2022,the Central Bank issued the "Financial Technology Development Plan",emphasizing the high-quality promotion of financial digital transformation,promoting the deep integration of financial business and financial technology,and improving the modern financial system adapted to the development of digital economy.In the future financial development planning,the financial digital transformation of a new business form supported by financial technology has become an inevitable trend in the development of the financial industry.So,how listed commercial banks seize the opportunity of technological development to realize their own transformation and development has become the focus of current widespread concern.This paper studies the influence of fintech on the profitability of listed commercial banks from two levels of theoretical analysis and empirical analysis.Among them,the theoretical analysis first describes the overview of the development of financial technology and profitability of listed commercial banks in China,and analyzes the existing problems and influencing factors accordingly.Then it discusses the influence mechanism of fintech on the commercial banks,and analyzes it from two aspects of promotion and inhibition,thus laying a theoretical foundation for empirical analysis.In the empirical analysis,this paper selects the data of 32 listed commercial banks in China since 2013 to 2021 as sample for research and analysis.Through the construction of panel data model for regression analysis,the following conclusions are drawn: First,financial technology has improved the profitability of commercial banks to a certain extent.Financial science and technology investment has promoted the profitability of listed commercial banks in China and brought certain profit effects to commercial banks.Second,the influence of Fintech on the profitability of different types of commercial banks is differential.Financial technology has the least impact on large state-owned commercial banks,followed by joint-stock commercial banks,and urban commercial banks have the greatest impact on financial technology.Based on previous analysis,the paper proposes the following policy recommendations: first,grasp the development opportunities of financial technology,namely,accelerate reforming customer services,deepen cooperation with Internet enterprises,improve the construction of financial technology talent team and deepen the construction of financial technology risk control system;The second is to guide the sound development of financial technology,that is,to improve the construction of relevant legal systems,strengthen the risk control and supervision of financial institutions,and coordinate the common development of financial technology subjects.So as to accelerate the progress of financial technology of commercial banks,improve the construction of financial technology system,promote the smooth and efficient operation of the entire financial system,and improve the ability of financial services to the real economy.