The Impact Of Fintech Application On The Risk-taking Of Commercial Banks

Fintech application has become the driving force of the digital transformation,meanwhile,the risk-taking behaviors of commercial banks become more and more complexed.The Central Committee attaches great importance to the application security of Fintech,and has repeatedly stressed the need to develop Fintech steadily in the 14 th Five-Year Plan and the two sessions in 2022.Therefore,studying the impact of Fintech application on the risk-taking of commercial banks is significant.This paper selects 101 commercial banks in China from 2013 to 2020.Firstly,considering the key technology and the application status,this paper summarizes three application features,including online operation management,digital risk management and intellectual wealth management;Then,this paper extracts five keywords from each field,the keywords’ frequency are captured by Python,and the Fintech Application Index of each field is constructed by Factor Analysis;Then,this paper researches the influence of Fintech application on the risk-taking of commercial banks in various fields with the system GMM model;Finally,grouping experiments are performed to explore the heterogeneity effect between various forms of banks.The empirical results show that: firstly,online operation management can reduce the operation cost,then weaken the risk-taking willingness;Digital risk management raises the accuracy and timeliness in the evaluation and monitoring of credit risk,thus reducing risk-taking;Intellectual wealth management improves the expected rate of return,increases the pressure of interest payment,then urges commercial banks to improve risk-taking.Secondly,in the early stage of the Fintech overall application,commercial banks will improve risk-taking to make up for the high investment cost.However,the level of risk-taking will decline because of the economies of scale.Thirdly,affected by the application strategy,individual differences exist.National commercial banks tend to apply comprehensively,and the effects in different fields offset each other,so the overall impact is not significant;Regional commercial banks focus on the operation management,so their risk-taking level is significantly reduced.This paper focuses on Fintech application rather than Fintech development.It leads us to rethink the function of commercial banks and the Fintech application direction.It offers advice for the stability of commercial banks and the rational Fintech application.