The Research On The Impact Of Third-party Payment On The Innovation Ability Of Commercial Banks

As the main part of China’s financial system,commercial banks are inextricably linked with all industries.Their importance is self-evident and they have become a strong guarantee for the smooth operation of the national economy.In recent years,with the change of market direction,the financial form of Internet finance,a new type of business,is growing quietly,which changes the pattern of China’s financial market imperceptively.Traditional finance has suffered a certain impact,and commercial banks are the first to bear the brunt.Third party payment as representative of the Internet financial,with its convenient and quick,low cost etc.,in a short time scale,development situation to be reckoned with,because there are overlaps between business,lead to more competitive,third-party payment not only take the commercial bank’s market share,but also have squeezed the profit space of commercial Banks,Has become a formidable opponent to be reckoned with.Under the background of market is already saturated,only innovation can break through,in order to deal with threats from third-party payment,commercial Banks active policy measures,reversed transmission increasing upgrade transformation,and accelerate the pace of financial innovation and business model changes,continuously improve the quality of service,to promote product updates iteration,provide more diverse user experience,To meet the needs of different customer groups,so as to have enough core competitiveness,not to be eliminated by the market.This paper takes 45 commercial banks of different nature in China as the research object,adopts dynamic panel model,conducts regression test on panel data from 2010 to 2020,and studies the effect of third-party payment on the innovation capability of China’s commercial banks.Results show that the development of the third-party payment causes positive comprehensive influence significantly to commercial Banks innovation ability,which suggests that although the emergence of the third-party payment indeed brought commercial Banks more or less threats and challenges,but also reversed transmission in improving commercial Banks to strengthen themselves,positive innovation on technology and business,and thus the overall positive spillover effect and competition effect.Finally,starting from the weak links in the operation of commercial banks,combined with the empirical results,several suggestions and countermeasures are put forward to improve their innovation ability,so as to promote the common growth and development of third-party payment and commercial banks,in order to create a long-term win-win situation and build a new pattern of high-quality and healthy development of financial market under the new normal.