Fintech and Commercial Bank Profitability: Evidence from China

Using the empirical research method, this paper uses information of 17 listed commercial banks in China from 2015 to 2021 as research samples to investigate the impact of fintech on the profitability of commercial banks. The study discovered that the fintech index has a significant negative impact on the profitability of commercial banks, which indicates that fintech will inhibit the development of industrial banks to a certain extent. The heterogeneity test and robustness test are carried out, and the conclusion is still reliable. Considering this, this paper believes that commercial banks should increase the investment in financial technology; Actively working with fintech companies; Introducing and cultivating scientific and technological talents; Through strengthening financial innovation and supervision, to establish a sound regulatory system, these suggestions have important reference value for commercial banks to develop financial technology and use financial technology to improve profitability.