FinTech and Commercial Banks'Operating Performance:A"U-Shaped"Relationship
FinTech has transformed the operational mode of the traditional financial industry.As key players in this industry,commercial banks are inevitably impacted by the advancements in FinTech.Using unbalanced panel data from 514 commercial banks in China spanning from 2014 to 2023,this study empirically explores how fi-nancial technology development"empowers"the operational performance of com-mercial banks through a two-way fixed effects model.The research findings reveal that:(1)from a dynamic perspective,there is a"U-shaped"relationship between fi-nancial technology and commercial bank performance;(2)in terms of the impact mechanism,financial technology development influences commercial bank perform-ance through cost operation channels,credit risk channels,and intermediary busi-ness channels;(3)from the perspective of heterogeneity,compared to state-owned and joint-stock commercial banks,financial technology has a more significant effect on enhancing the performance of rural and urban commercial banks.Therefore,gov-ernments should lead the development of financial technology to support the inte-gration of technology in the banking sector;commercial banks should deepen tech-nological cooperation to improve financial service efficiency;and financial technolo-gy enterprises should lead innovation and drive the digital and intelligent upgrading of banks.
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