Analysis of the Impact of Fintech Investment on the Operating Performance of Commercial Banks

Qitian Wang

doi:10.54097/k2q9cr94

Authors

Qitian Wang Bachelor of Business Administration, Lingnan University, Hong Kong, China

DOI:

https://doi.org/10.54097/k2q9cr94

Keywords:

Operating performance of commercial banks, investment in financial technology, performance lag, cost control optimization.

Abstract

The digital wave has driven a fundamental transformation in the financial service model, with innovative applications such as mobile payment, digital banking, and intelligent investment advice constantly emerging. Based on the resource-based theory, this study selects the financial data of six representative Chinese listed commercial banks from 2022 to 2024 and empirically examines the impact of fintech investment on the operating performance of commercial banks. This paper, through the analysis of the fixed-effect model, finds that in the short term, financial technology investment significantly suppresses return on assets, mainly due to the high-cost pre-effect of technology research and development and system reconstruction. The expansion of asset scale intensifies "diseconomies of scale", and the cost-income ratio is the key variable for regulating profits. In the long term, financial technology investment can release profit potential by optimizing risk control and reducing operating costs. It is suggested that commercial banks establish a phased assessment mechanism for technology investment and coordinate business applications to accelerate the profit turning point.

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