Empirical Study on the Impact of Fintech on Profitability of State-owned Commercial Banks

Empirical Study on the Impact of Fintech on Profitability of State-owned Commercial Banks

 Qiu-bin Lin

(Fuzhou University of International Studies and Trade )

 

Abstract

Fintech is an emerging technology produced by the combination of finance and technology, which has a two-sided nature for banks developed by China’s commercial banks. On the one hand, the rise of fintech has brought challenges to the traditional intermediate business of commercial banks, affecting profitability; On the other hand, the development of financial technology has brought sufficient impetus to the innovation and transformation of traditional banking business, promoted the traditional banking to an intelligent and technological service model, and improved market competitiveness. Based on the data of China’s state-owned commercial banks from 2011 to 2019, this paper selects relevant variables to construct fintech indexes and profitability indicators, and conducts an empirical study of fintech on the profitability of commercial banks by constructing a panel data model. The empirical results show that the application of financial technology has promoted the growth of the return on assets of state-owned commercial banks, and this paper finally proposes corresponding countermeasures to promote the better application of financial technology and improve profitability of state-owned commercial banks.

 

Keywords: State-owned commercial banks; Fintech knowledge; Profitability; Panel model