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Main Authors: Yang, Yudi, Yang, Fan, Yi, Xiajie, He, Dongwei
Format: Preprint
Published: 2025
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Online Access:https://arxiv.org/abs/2511.02608
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author Yang, Yudi
Yang, Fan
Yi, Xiajie
He, Dongwei
author_facet Yang, Yudi
Yang, Fan
Yi, Xiajie
He, Dongwei
contents This paper investigates the impact of financial technology (FinTech) on the financial sustainability (FS) of commercial banks. We employ a three-stage network DEA-Malmquist model to evaluate the FS performance of 104 Chinese commercial banks from 2015 to 2023. A two-way fixed effects model is utilized to examine the effects of FinTech on FS, revealing a significant negative relationship. Further mechanistic analysis indicates that FinTech primarily undermines FS by eroding banks' loan efficiency and profitability. Notably, banks with more patents or listed status demonstrate greater resilience to FinTech disruptions. These findings help banks identify external risks stemming from FinTech development, and by elucidating the mechanisms underlying FS, enhance their capacity to monitor and manage FS in the era of rapid FinTech advancement.
format Preprint
id arxiv_https___arxiv_org_abs_2511_02608
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle How FinTech affects financial sustainability: Evidence from Chinese commercial banks using a three-stage network DEA-Malmquist model
Yang, Yudi
Yang, Fan
Yi, Xiajie
He, Dongwei
General Finance
This paper investigates the impact of financial technology (FinTech) on the financial sustainability (FS) of commercial banks. We employ a three-stage network DEA-Malmquist model to evaluate the FS performance of 104 Chinese commercial banks from 2015 to 2023. A two-way fixed effects model is utilized to examine the effects of FinTech on FS, revealing a significant negative relationship. Further mechanistic analysis indicates that FinTech primarily undermines FS by eroding banks' loan efficiency and profitability. Notably, banks with more patents or listed status demonstrate greater resilience to FinTech disruptions. These findings help banks identify external risks stemming from FinTech development, and by elucidating the mechanisms underlying FS, enhance their capacity to monitor and manage FS in the era of rapid FinTech advancement.
title How FinTech affects financial sustainability: Evidence from Chinese commercial banks using a three-stage network DEA-Malmquist model
topic General Finance
url https://arxiv.org/abs/2511.02608