Research Article
The Impact of Financial Technology on the profitability of Commercial Banks—Base on Science and Technology and Artificial Intelligence
@INPROCEEDINGS{10.4108/eai.18-11-2022.2326879, author={Di He}, title={The Impact of Financial Technology on the profitability of Commercial Banks---Base on Science and Technology and Artificial Intelligence}, proceedings={Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022, Nanjing, China}, publisher={EAI}, proceedings_a={ICEMME}, year={2023}, month={2}, keywords={fintech; financial technology; commercial banks; profitability}, doi={10.4108/eai.18-11-2022.2326879} }- Di He
Year: 2023
The Impact of Financial Technology on the profitability of Commercial Banks—Base on Science and Technology and Artificial Intelligence
ICEMME
EAI
DOI: 10.4108/eai.18-11-2022.2326879
Abstract
With the development of science and technology, the fourth industrial revolution started. Science and technology have gradually increased their weight in the development of enterprises, but it is not certain about the effect of integrating fintech into financial institutions. This paper uses Stata16.0 to construct a fixed-effect model for regression analysis to study the impact of fintech on the profitability of financial institutions. The explanatory variable used is fintech, while the explained variable is ROA, the control variables are capital adequacy ratio (CAR), cost-income ratio (COST), the bank’s total assets (ASSET), non-performing loan ratio (NPL), loan-to-deposit ratio (LTD), annual gross domestic product growth rate (GDPGR), and aggregate financing to the real economy (SSF). The financial data of 15 listed commercial banks from 2012 to 2020 used in this paper are from the wind database, and the annual GDP growth and social financing scale data are from the National Bureau of Statistics of China. The fintech index of China is represented by the calculated mean of the "total digital financial inclusion index" of 31 administrative divisions in the Study of Fintech Competitiveness Index of Chinese Cities. The empirical results show that the development of fintech has a negative impact on the profitability of commercial banks.
