The Impact Of Development Of Digital Financial Inclusion On Business Performance Of Commercial Banks

Small and medium-sized enterprises are the micro foundation of economic operation,the capillaries of the national economic cycle,and the key to accelerating the realization of common prosperity.The central government attaches great importance to and requires the banking industry to use digital means to innovate the financing business and product model of small and medium-sized enterprises through technological empowerment,so as to help small and medium-sized enterprises bail out of difficulties.In May 2020,National Development and Reform Commission launched “Digital Transformation Partnership Action(2020)”,uniting 145 units to carry out business digital transformation,including four large commercial banks,joint-stock commercial banks and city commercial banks,aiming to build a digital industrial chain and cultivate new forms of digital economy.This thesis discusses from two dimensions: theory and empirical.Firstly,through the analysis of the development of digital inclusive finance and the operation status of commercial banks in China,this thesis puts forward the hypothesis that while digital inclusive finance intensifies competition in the banking industry,the demonstration and spillover effect of digital technology can improve the experience performance of commercial banks.Secondly,from the empirical dimension,taking 37 listed commercial banks in China from2013 to 2021 as a sample,the performance indicators of commercial banks with inclusive nature are calculated by factor analysis,and the bank competition elerner index calculated beyond the logarithmic cost function is used as an intermediary variable to construct an intermediary effect model.It is concluded that the development of digital inclusive finance has indeed intensified the competition in the banking industry,triggered the catfish effect,promoted the growth of commercial banks’ operating performance,and improved the liquidity,profitability and inclusiveness of commercial banks,but the asset safety has declined.Among them,the improvement of the operating performance of joint-stock commercial banks is the most obvious,while the digital transformation ability of rural commercial banks is poor,and their business performance has not been affected by the development of digital inclusive finance.Based on the above empirical results,corresponding suggestions are given: China should increase the construction of digital inclusive financial infrastructure,promote the coordinated development of digital inclusive financial regions,establish and improve the long-term mechanism and governance system of digital financial supervision.In addition,all types of commercial banks should also make good use of their own advantages,provide personalized and differentiated services,pay attention to asset quality and safety,and continuously improve their level of protection against credit risk,technical risk and liquidity risk with the support of technology.