The restructure of China’s banking industry by artificial intelligence and FinTech 1

With the declining contribution of traditional businesses to commercial banks, the banking industry is facing the pressure of strategic transformation. The rise of FinTech has played a key role in the reshaping of the whole financial industry, and it has also provided an effective solution for the banking industry about how to transform. Through qualitative analysis, this chapter evaluates the current application status of FinTech in the Chinese banking industry. It also discusses how to improve the banking system to adapt to the development trend of FinTech. In the terms of case analysis, we conducted research on two oustanding banks in this FinTech reform – Agricultural Bank and WeBank. In the analysis of the data disclosed in the annual reports of Chinese A-share listed banks from 2009 to 2018, the results show that the application of FinTech can improve the performance of commercial banks.