Research on the Impact of Fintech on China’s BankingIndustry

DOI

10.2991/978-94-6463-108-1_61How to use a DOI?

Keywords

Fintech; Banking Industry; Retail Business of Commercial Bank; Development Capacity

Abstract

The banking industry is the main body of the modern financial systemand an important hub for the operation of the national economy. Fintech is thekey to the innovation and reform of the banking industry. This paper uses textmining technology to collect urban fintech patent data. Based on the micro paneldata of various commercial banks in China from 2009 to 2018, this paper analyzesthe development capability of China’s banking industry from two aspects:asset growth rate (AG) and non-interest income ratio (NIR). This paper findsthat: (1) present the downward trend, China banking assets growth of joint-stockcommercial bank asset growth decline is most obvious. (2) large state-ownedcommercial Banks overall present a higher level of development, joint-stockcommercial Banks’ non-interest income ratio showed a trend of increasing yearby year, the city commercial Banks and rural commercial Banks showed poorability to innovate. (3) China’s large state-owned commercial banks andjoint-stock commercial banks have greater competitiveness than urban commercialbanks and rural commercial banks, but urban and rural commercial bankshave greater development potential. Based on the revenue and profit of retailbusiness of China’s five major state-owned commercial banks from 2010 to 2018,The micro panel data of retail deposits and loans of China Construction Bankfrom 2007 to 2018 and the development of retail deposits and loans of Chinesecommercial banks from 2011 to 2018 quantitatively investigate the effect offintech development on the profitability of retail business of Chinese commercialbanks. The findings are as follows: (1) Financial technology contributes to thecontinuous improvement of the benefit contribution of banks’ retail business (2).Fintech impacts the asset and liability structure of China’s banking industry (3).Fintech has boosted the steady growth of retail deposit and loan business. Combinedwith the research conclusions of this paper, aim to speed up the organicintegration of China’s banking industry and fintech and improve the competitivenessof the banking industry, suggestions are put forward from three aspects:(1) at the level of national policy, create a superior environment suitablefor the growth of fintech and increase the training of fintech professionals. (2) Atthe banking supervision level, accelerate the improvement of fintech laws andregulations, and build an industry regulatory framework (3). In terms of banking development, we will use the advantages of emerging technologies to enhancefinancial service capabilities.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zhibin Tao
AU  - Jiaxiao Chao
PY  - 2022
DA  - 2022/12/30
TI  - Research on the Impact of Fintech on China’s BankingIndustry
BT  - Proceedings of the 2022 International Conference on Computer Science, Information Engineering and Digital Economy (CSIEDE 2022)
PB  - Atlantis Press
SP  - 533
EP  - 548
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-108-1_61
DO  - 10.2991/978-94-6463-108-1_61
ID  - Tao2022
ER  -