Publication Type
Conference Proceeding Article
Version
submittedVersion
Publication Date
3-2022
Abstract
Digital payment has become one of the most popular payment methods all around the world, especially in countries that witnessed the rapid development of internet. As a traditional financial institution, commercial banks have been impacted by newly developed payment technology since third payment platforms have attracted customers to use the digital payment for daily consumption, transferring, and even investment. This paper focuses on analyzing whether and how the commercial banks in China have been affected by digital payment by using empirical methods. Systematic Generalized Method of Moments (SYS-GMM) is used to test the relationship between the productivity of commercial banks and digital payment. Panel Vector Auto-Regression (Panel VAR) is then applied to evaluate the long-term impact of the growth in digital payment on the efficiency of commercial banks, which is calculated by the Malmquist Productivity Index (MPI). The result based on data from 81 banks in China between 2013-2019 suggests that bankinvolved digital payment is beneficial to both profitability and productivity of commercial banks, and third-party digital payment harms the profitability but is not a granger cause of productivity.
Keywords
Digital payment, commercial banks, profitability of commercial banks
Discipline
Asian Studies | Finance and Financial Management | Software Engineering | Technology and Innovation
Research Areas
Intelligent Systems and Optimization
Publication
Proceedings of the 12th Annual International Conference on Industrial Engineering and Operations Management, Istanbul, Turkey, March 7-10
First Page
1
Last Page
11
Publisher
IEOM
City or Country
Istanbul
Citation
WANG, Haopeng and GUNAWAN, Aldy.
Analyzing the impact of digital payment on efficiency and productivity of commercial banks: A case study in China. (2022). Proceedings of the 12th Annual International Conference on Industrial Engineering and Operations Management, Istanbul, Turkey, March 7-10. 1-11.
Available at: https://ink.library.smu.edu.sg/sis_research/7180
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Included in
Asian Studies Commons, Finance and Financial Management Commons, Software Engineering Commons, Technology and Innovation Commons