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How does fintech affect commercial banks’ business performance? Evidence from the Chinese A-share market

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  • Cuiying Pan

    (Universiti Malaya
    Nanning University)

  • Wee-Yeap Lau

    (Universiti Malaya)

  • Tien-Ming Yip

    (Xiamen University)

Abstract

This study examines the impact of Fintech on the performance of commercial banks and its transmission mechanism. First, the dynamic System GMM model and PSM nearest neighbour matching model are constructed to compare the different impacts of Fintech on banks’ business performance. Second, a multiple mediating effects model explores the transmission mechanism between Fintech and business performance. Our findings show: First, Fintech has a significant positive impact on bank business performance under the dynamic panel model. Second, in the transmission mechanism of the impact of Fintech on banks’ operating performance, asset-liability management capability (NIM), intermediate business level (NIIR), operating efficiency (CIR) and risk management level (NPL) all bear the mediating effects. Among them, asset-liability management capability (NIM) and intermediate business level (NIIR) have positive mediating effects. In contrast, operational efficiency (CIR) and risk management level (NPL) have negative mediating effects. This study contributes to understanding how Fintech works on banks’ business performance.

Suggested Citation

  • Cuiying Pan & Wee-Yeap Lau & Tien-Ming Yip, 2025. "How does fintech affect commercial banks’ business performance? Evidence from the Chinese A-share market," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 49(4), pages 1094-1114, December.
    • Handle: RePEc:spr:jecfin:v:49:y:2025:i:4:d:10.1007_s12197-025-09734-w
    DOI: 10.1007/s12197-025-09734-w
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    Keywords

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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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