To What Extent Has Online Payment Influenced the Development of FinTech among Chinese Commercial Banks?

Abstract

With the rapid development of online payment platforms in China, this sector has impacted the returns and operations of traditional commercial banks in China. This paper investigates the impact of online payment platforms on Chinese commercial banks. First, this paper introduces FinTech and compares Online Banking and Online Payment. Next, the paper presents a list of developments in the online payment sector in China. Then, the paper constructs a trend chart using company earnings data to empirically examine the impact of online payment platforms on commercial banks' deposits, returns on equity and returns on assets. Finally, the paper discusses the impact and outlook of the emerging payment instrument e-CNY on traditional commercial banks and the general environment in China. The results show that the development of online payment has a positive impact on the growth of commercial banks and a negative impact on the returns of Chinese traditional commercial banks. The paper has significant implications for Chinese commercial banks to reflect on themselves, reduce their reliance on traditional business, and improve their products and services.