Does the fintech create value? A textual analysis of commercial banks in China

The rapid development of fintech has significantly impacted the traditional financial market and brought technological opportunities for commercial banks. In this context, based on a sample of 36 Chinese commercial banks from 2003-2019, this paper empirically investigates the impact of fintech on the performance of commercial banks through textual analysis. The results show that the effects of fintech on commercial banks' performance are mixed, where technology basis has a significant negative impact on performance, and electronic payment can enhance commercial banks' earnings. In addition, both the negative effect of technology basis and the positive effect of electronic payment on commercial bank performance are more substantial on non-state banks and, at the same time, national banks.