| In recent years,with the slowing down of domestic economic growth and the deepening of interest rate marketization,financial supervision has been increasing year by year,and the trend of financial disintermediation is obvious.At the same time,digital empowerment and fintech innovation have led to the strong rise of emerging fintech enterprises,with their main businesses overlapping and intersecting with the business scope of commercial banks.They also pay more attention to personalization,which will divert customers and squeeze out the market share of commercial banks.The above factors have had a strong impact on the survival and development space of commercial banks,causing the operating environment of China’s banking industry to continuously deteriorate and severely lacking development momentum.Since 2016,the pace of digital development in China has significantly accelerated.With the continuous progress of 5G technology,technologies such as big data,cloud computing,and artificial intelligence have become increasingly sophisticated.These emerging technologies have also been gradually adopted by commercial banks to achieve their own digital development and transformation.Commercial banks have applied financial technology to innovate financial products,improve customer acquisition capabilities,and improve service quality,overturning their traditional operational models and development directions.They have gradually begun to pursue more personalized services,ecological business models,intelligent decision-making,and virtual service channels,thereby expanding their profits,enhancing risk control capabilities,and improving operational efficiency,The digital development has also become an inevitable trend in the reform of China’s banking industry.This article first elaborates on the research background and significance,introduces the research methods and basic framework,and briefly summarizes the relevant research results at home and abroad.Secondly,this article introduces the basic theory of digital development in commercial banks and analyzes its impact mechanism on profitability.It concludes that the implementation of digital development in commercial banks will promote the internal mechanism of increasing profitability through channels such as improving loan quality and expanding asset scale.This provides theoretical preparation for subsequent empirical research.Then,this article selected the annual reports and financial data of 85 domestic commercial banks from 2014 to 2021 as research samples,and used text analysis methods to construct the digital development index of commercial banks,which serves as the core explanatory variable of the empirical model.The index was then analyzed for its characteristics.At the same time,the total return on assets represents profitability and the proportion of non interest income represents profit structure as the explained variables respectively,and the GDP growth rate,Capital adequacy ratio and other indicators that may affect the profitability of commercial banks are introduced as control variables,and a series of empirical studies are carried out using the fixed effect model.The empirical results indicate that overall,the digital development of commercial banks has a significant positive impact on profitability.At the same time,commercial banks are divided into regional banks and national banks for heterogeneity testing based on their coverage and scale.For regional banks,promoting digital development has a significant positive effect on profitability,while for national banks,the impact of digital development on profitability shows an inverted "U" shaped nonlinear relationship that first increases and then decreases.At the same time,in the mesomeric effect test,the non-performing loan rate,asset scale and technology investment are used as intermediary variables to verify the above impact mechanism analysis.Finally,according to the results of empirical analysis,this paper puts forward several suggestions on how to promote Digital transformation of commercial banks to improve their profitability,namely,clarifying digital development strategy,continuously expanding digital development investment,deepening digital development cooperation,and strengthening related risk prevention and control. |
