Research On The Mechanism And Effect Of Banking Competition Driven By Fintech

The report of the 20 th National Congress of the Communist Party of China proposed to accelerate the development of the digital economy and promote the deep integration of the digital economy and the real economy.The digitalization of the digital economy in the financial field has led to the industrialization of Fintech and brought new opportunities and challenges to the financial industry.All kinds of commercial banks continue to increase the investment in Fintech and accelerate the pace of digital transformation,thus forming a new competitive landscape.Under the background of national digital strategy and bank digital transformation,taking Fintech and banking competition as the object,this paper deeply analyzes and tests the mechanism and effect of Fintech driving banking competition,which has important theoretical and practical significance.On the basis of investigating the current situation of China’s Fintech and banking competition,this paper explores the impact mechanism and effect of Fintech on banking competition through mathematical analysis,theoretical analysis and empirical analysis.In the empirical aspect,we take the panel data of 31 provinces(cities,autonomous regions)from 2011 to 2020 as the sample to investigate the impact of financial technology on the banking industry competition,and carry out endogenous processing and robustness testing to improve the reliability of the conclusion.Then we analyze the heterogeneity of dimensions,regions and total factor productivity,and use financial inclusion as the adjustment variable to analyze the regulatory effect.At the same time,build a spatial econometric model to empirically test the impact mechanism of Fintech on banking competition,and draw important conclusions and enlightenment:1.Fintech has increased the level of competition in banking.The research shows that the coverage of Fintech has significantly improved the level of banking competition,and the performance of Fintech in the eastern region and high total factor productivity areas is more obvious.2.Financial inclusion has a regulatory effect in the Fintech affecting the competition of the banking industry.The results of the calculation show that the differences in financial inclusive areas in China are obvious,and it is manifested as the Eastern Region> Central> Western Region.Moreover,the higher the financial inclusive areas,the more obvious the impact of Fintech on the banking industry competition.3.The impact of Fintech on regional banking competition has a spatial spillover effect;Fintech affects banking competition through "market crowding out" and "technology spillover",which has a spatial spillover effect.In view of the above conclusions,the article gives these suggestions: Adapt to the development of fintech and accelerate the digital transformation;Expand application scenarios and improve the effectiveness of inclusive finance;Follow the policy guidance and serve the real economy;Strengthen financial technology exchanges and build differentiated competitiveness;Improve fintech policies and strengthen fintech regulation.Innovation and deficiency: Firstly,the index analysis system of financial inclusion should be innovatively constructed to expand the selection range of indicators and improve the accuracy of variable measurement.At the same time,the regulatory role of financial inclusion in the influence of Fintech on banking competition should be considered.Secondly,the paper considers the heterogeneity of total factor productivity in the influence of fintech on banking competition,and expands relevant research.Thirdly,there are deficiencies in the measurement of Fintech indicators,and the analysis on the channel mechanism of Fintech affecting banking competition is not comprehensive enough.Follow-up and improvement will be made in this regard.