A Review on the Impact of Fintech Development on the Profitability of Commercial Banks in China
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Keywords
fintech, commercial banks, profitability, digital transformation, DuPont analysis
Abstract
This paper takes the development of fintech and the profitability of commercial banks in China as the research objects, adopts the literature review method to systematically sort out the definition, types and related theoretical basis of fintech, and clarifies the core evaluation indicators of bank profitability. On this basis, this paper reviews the action mechanism, transmission paths and empirical evidence of fintech development affecting the profitability of commercial banks, and summarizes the driving factors and restrictive conditions in the impact process. The study finds that fintech influences commercial banks' profitability through technological empowerment, market competition, business innovation and risk adjustment, with both promoting and inhibitory effects. Finally, this paper comments on the existing research deficiencies and puts forward the future research directions, aiming to provide theoretical support for commercial banks' digital transformation and regulatory policy optimization, and verifies a significant U-shaped nonlinear relationship between fintech development and bank profitability based on DuPont decomposition.
References
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