Fintech and Banking Efficiency: Evidence from Chinese Commercial Banks

43 Pages Posted: 18 Feb 2021

See all articles by Yixuan Li

Yixuan Li

University of Glasgow

Charalampos Stasinakis

University of Glasgow

Wee Meng Yeo

University of Glasgow

Date Written: February 9, 2021

Abstract

Will the development of FinTech improve the efficiency of commercial banks in China? In recent years, FinTech has been continuously developing and applying to the financial industry which has brought opportunities and challenges to the operation and management of commercial banks in China. We focus on the empirical analysis of the impact of FinTech on the operating efficiency of commercial banks. By examining Chinese commercial banks as an empirical sample, we find that the development of FinTech has a significant role in promoting the efficiency of Chinese commercial banks. On this basis, we further compared the feedback of changes in the efficiency of different Chinese commercial banks to the development of FinTech. Accordingly, the efficiency changes of city commercial banks in China have been most significantly affected by the development of FinTech. Based on the empirical results, the financial development elements are further added to explore the geographical characteristics of city commercial banks. We find that the development of FinTech has a stronger effect on the efficiency change of city commercial banks in areas with higher levels of financial development.

Keywords: FinTech; Chinese commercial banks; Financial development

JEL Classification: F65,G21,G39

Suggested Citation

Li, Yixuan and Stasinakis, Charalampos and Yeo, Wee Meng, Fintech and Banking Efficiency: Evidence from Chinese Commercial Banks (February 9, 2021). Available at SSRN: https://ssrn.com/abstract=3782616 or http://dx.doi.org/10.2139/ssrn.3782616

Yixuan Li (Contact Author)

University of Glasgow ( email )

Adam Smith Business School
Room 302,11 Southpark Terrace
Glasgow, Scotland G12 8LG
United Kingdom

Charalampos Stasinakis

University of Glasgow ( email )

University Avenue
Adam Smith Business School
Glasgow, Scotland G128QQ
United Kingdom

Wee Meng Yeo

University of Glasgow ( email )

Adam Smith Business School
Glasgow, Scotland G12 8LE
United Kingdom

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