Unraveling the Fintech Puzzle: Technology Shaping Commercial Bank Lending Risk

Rapid development of financial technology has played a significant role in the development of the financial industry. Commercial banks as a crucial part of the development of the financial industry, and loan risk is an important indicator of risk control of commercial banks, risk control of commercial banks and even the healthy development of the entire financial industry plays a key role in the study of the impact of fintech on the loan risk of commercial banks is also particularly important. At present, there is no uniform conclusion about the impact of fintech on commercial bank loan risk because China is one of the fastest developing countries in the world of fintech, and this study selects the individual data and macro-environmental factors of 49 commercial banks in China, including state-owned banks, joint-stock banks, and local and municipal commercial banks. Through Python to crawl out the 49 banks on the fintech keyword search news results, and the fintech index constructed after dimensionality reduction, the final formation of 10 years of 49 banks panel data, through the data analysis software (stata) to analyze the impact of fintech on China’s commercial bank loan risk, the results show that the impact of fintech on the commercial bank loan risk is non-linear The results show that the impact of fintech on commercial bank loan risk is non-linear, and there is a “U” type relationship; the limitation of this study is that the data is still not comprehensive and representative enough, the contribution of this study is to help scholars better reference for related research, as well as the enterprise can be based on their own enterprise characteristics plus this study to specify the risk prevention and control methods suitable for the enterprise.