A Review of the Impact of FinTech on Commercial Banks' Profit Models—Taking Mobile Payment as an Example

Abstract

With the rapid development of FinTech, mobile payment, as one of the most widely used technologies, has gradually reshaped the profit and operating models of commercial banks. This paper systematically reviews relevant literature, explores the impact of mobile payment on the profit models of commercial banks, clarifies the differences in existing research perspectives, and proposes corresponding countermeasures. Based on the theoretical framework of financial intermediation theory and platform economy theory, this paper reviews the traditional profit models of commercial banks and the dual impact of mobile payment. The study finds that mobile payment has two sides to the profit models of commercial banks: on the one hand, it reduces payment costs, improves transaction convenience, changes consumer behavior, expands transaction volume, brings new business opportunities to banks, and increases non-interest income; on the other hand, it leads to the transfer of data and information advantages, and due to regulatory asymmetry, it intensifies market competition and erodes the traditional sources of income for banks. In addition, the impact of mobile payment has obvious scenario dependence and is affected by factors such as bank size, digital capabilities, regulatory environment, and market structure. Finally, this paper points out that the future competitiveness of commercial banks will depend on their ability to adapt to digital transformation and proposes prospects for future research directions. This study provides a systematic reference for understanding the impact of mobile payment on the profit models of commercial banks and promoting the transformation and development of commercial banks.