• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
HOME > Archive > 2022 > Volume 13 Number 5 (Oct. 2022) >
IJTEF 2022 Vol.13(5): 155-161 ISSN: 2010-023X
DOI: 10.18178/ijtef.2022.13.5.739

Research on the Impact of Fintech Investment on the Profitability of Internet Banks in China

Li Yuman and Zhang Rubing

Abstract—Fintech investment is the driving force for the survival and development of Internet banks. Based on the domestic and foreign research on the impact of bank profitability, this paper selects 16 Internet banks in China in 2019, uses Factor Analysis method to extract three factors of fintech investment, which are scale, increment and structure factors, and constructs a linear regression model with asset scale and equity structure as control variables. The results show that the scale factor of fintech investment has the most important and significant positive impact on the profitability, which indicates that in the initial stage of Internet banks, we should closely rely on fintech innovation to improve scale economy effect, so as to successfully achieve value creation and sustainable development.

Index Terms—Fintech investment, Internet Bank, Profitability, Factor analysis

Li Yuman is with the School of Economics and Management, Beijing Information Science and Technology University, Beijing, China (Corresponding author; e-mail: yuman_li@sina.com).
Zhang Rubing is with Beijing Information Technology University, Beijing, China.

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Cite: Li Yuman and Zhang Rubing, "Research on the Impact of Fintech Investment on the  Profitability of Internet Banks in China," International Journal of Trade, Economics and Finance vol.13, no.5, pp. 155-161, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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