Research on the impact of digital finance on the operational efficiency of banking industry
Jie Chen
School of Finance, Harbin University of Commerce
DOI: https://doi.org/10.59429/bam.v7i1.9543
Keywords: Digital finance; Banking industry; Operational efficiency; Technological spillover; Organizational change
Abstract
Digital finance is profoundly reconfiguring the value chain and operation logic of the banking industry through technological empowerment and model innovation. This paper systematically analyzes the mechanism of digital finance on the operational efficiency of the banking industry from the three dimensions of technology spillover, process reengineering and service innovation. The study shows that digital finance significantly improves the overall efficiency of the banking industry by reducing transaction costs, optimizing resource allocation and expanding service boundaries, but there are significant heterogeneous effects in different types of banks. Meanwhile, issues such as the conflict between technology application and institutional friction, and the balance between data security and innovation incentives have become key bottlenecks restricting the sustained improvement of efficiency. This paper proposes policy recommendations such as promoting digital transformation in a hierarchical manner and constructing a “regulatory sandbox” pilot mechanism to provide theoretical references for efficiency improvement in the banking industry. Digital finance is profoundly restructuring the value chain and operation logic of the banking industry through technological empowerment and model innovation. This paper systematically analyzes the mechanism of digital finance on the operational efficiency of the banking industry from the three dimensions of technological spillover, process reengineering and service innovation. The study shows that digital finance significantly improves the overall efficiency of the banking industry by reducing transaction costs, optimizing resource allocation and expanding service boundaries, but there are significant heterogeneous effects in different types of banks. Meanwhile, issues such as the conflict between technology application and institutional friction, and the balance between data security and innovation incentives have become key bottlenecks restricting the sustained improvement of efficiency. This paper puts forward policy suggestions such as promoting digital transformation in a hierarchical manner and constructing a “regulatory sandbox” pilot mechanism, which provide theoretical references for efficiency improvement in the banking industry
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