Author(s)

Yingying Kong

Corresponding Author

Yingying Kong

ABSTRACT

Based on the realistic background of the deepening development of fintech, this paper selects the panel data of 67 commercial banks in China from 2011 to 2019 and uses the digital financial inclusion index to measure the development level of fintech to study the impact of fintech on the profitability of commercial banks. The empirical study shows that there is a significant "inverted U-shaped" relationship between fintech and the profitability of Chinese commercial banks. In addition, fintech development has a significantly greater impact on the profitability of large medium- sized commercial banks than small banks. Finally, corresponding policy suggestions are given according to the results to enhance the profitability and competitiveness of commercial banks.

KEYWORDS

Fintech, Commercial Banks, Profitability, Panel Data