Research on the Impact of Commercial Banks' Digitalization Level on Their Operational Performance

Authors

  • Chenxin Zhao

DOI:

https://doi.org/10.6911/WSRJ.202410_10(10).0007

Keywords:

Commercial Bank, Digital Transformation, Business Performance.

Abstract

This article takes the digitalization level of commercial banks as the research object to explore the impact of the improvement of commercial banks' digitalization level on their operational performance. The article uses the "Peking University Commercial Bank Digital Transformation Index" from the Digital Finance Research Center of Peking University, selecting banks that have publicly available annual reports for at least three years from 2010 to 2021. Based on theoretical analysis, in order to test the non-linear impact of commercial banks' digital transformation on operational performance, a multivariate regression benchmark model is designed using the unbalanced panel data of sample banks and the ordinary least squares (OLS) estimation method. The study finds that: the impact of the improvement of commercial banks' digitalization level (internal financial technology) on bank performance shows a "U-shaped" effect that first suppresses and then promotes. The "U-shaped" effect of first suppression and then promotion is more significant for non-listed banks, banks with lower registered digital financial development, and banks with lower financial technology development levels compared to listed banks, banks with higher registered digital financial development, and banks with higher financial technology development levels.

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Published

2024-09-23

Issue

Section

Articles

How to Cite

Zhao, Chenxin , trans. 2024. “Research on the Impact of Commercial Banks’ Digitalization Level on Their Operational Performance”. World Scientific Research Journal 10 (10): 49-70. https://doi.org/10.6911/WSRJ.202410_10(10).0007.