An Analysis of the Effect of FinTech on Commercial Banks’ Innovation Ability in China

The emerging FinTech is reshaping the financial industry, accelerating innovation process in banking sector. While FinTech grab customers and resources from traditional commercial banks, it has positive effect on commercial banks. Based on the panel data set of 59 commercial banks from China during...

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Main Author: Dong, Aidi
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/53564/
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author Dong, Aidi
author_facet Dong, Aidi
author_sort Dong, Aidi
building Nottingham Research Data Repository
collection Online Access
description The emerging FinTech is reshaping the financial industry, accelerating innovation process in banking sector. While FinTech grab customers and resources from traditional commercial banks, it has positive effect on commercial banks. Based on the panel data set of 59 commercial banks from China during 2010 to 2017, this paper empirically investigates the impact of FinTech on commercial banks’ innovation ability, which is measured by income diversification. The result indicates that FinTech lending business has positive effect on banks’ innovation while FinTech payment business shows a negative relationship with bank innovation ability. Further research finds that P2P lending business boosts non-interest income in state-owned commercial banks and regional commercial banks, but it limits the income diversification in joint-stock commercial banks. Conversely, rapid development of FinTech payment business is followed with less income diversification in state-owned commercial banks and regional commercial banks, while joint-stock commercial banks earn more non-interest income with the boom of third-party payment.
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spelling nottingham-535642022-03-11T15:54:44Z https://eprints.nottingham.ac.uk/53564/ An Analysis of the Effect of FinTech on Commercial Banks’ Innovation Ability in China Dong, Aidi The emerging FinTech is reshaping the financial industry, accelerating innovation process in banking sector. While FinTech grab customers and resources from traditional commercial banks, it has positive effect on commercial banks. Based on the panel data set of 59 commercial banks from China during 2010 to 2017, this paper empirically investigates the impact of FinTech on commercial banks’ innovation ability, which is measured by income diversification. The result indicates that FinTech lending business has positive effect on banks’ innovation while FinTech payment business shows a negative relationship with bank innovation ability. Further research finds that P2P lending business boosts non-interest income in state-owned commercial banks and regional commercial banks, but it limits the income diversification in joint-stock commercial banks. Conversely, rapid development of FinTech payment business is followed with less income diversification in state-owned commercial banks and regional commercial banks, while joint-stock commercial banks earn more non-interest income with the boom of third-party payment. 2018-08-30 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/53564/1/final%20dissertation-4295882.pdf Dong, Aidi (2018) An Analysis of the Effect of FinTech on Commercial Banks’ Innovation Ability in China. [Dissertation (University of Nottingham only)] Income diversification Innovation FinTech
spellingShingle Income diversification
Innovation
FinTech
Dong, Aidi
An Analysis of the Effect of FinTech on Commercial Banks’ Innovation Ability in China
title An Analysis of the Effect of FinTech on Commercial Banks’ Innovation Ability in China
title_full An Analysis of the Effect of FinTech on Commercial Banks’ Innovation Ability in China
title_fullStr An Analysis of the Effect of FinTech on Commercial Banks’ Innovation Ability in China
title_full_unstemmed An Analysis of the Effect of FinTech on Commercial Banks’ Innovation Ability in China
title_short An Analysis of the Effect of FinTech on Commercial Banks’ Innovation Ability in China
title_sort analysis of the effect of fintech on commercial banks’ innovation ability in china
topic Income diversification
Innovation
FinTech
url https://eprints.nottingham.ac.uk/53564/