Analyzing the impact of digital payment on efficiency and productivity of commercial banks: A case study in China

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 pla...

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Main Authors: WANG, Haopeng, GUNAWAN, Aldy
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2022
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Online Access:https://ink.library.smu.edu.sg/sis_research/7180
https://ink.library.smu.edu.sg/context/sis_research/article/8183/viewcontent/Analyzing_the_Impact_of_Digital_Payment_on_Efficiency_and_Productivity_of_Commercial_Banks___A_Case_Study_in_China.pdf
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spelling sg-smu-ink.sis_research-81832023-03-31T09:18:35Z Analyzing the impact of digital payment on efficiency and productivity of commercial banks: A case study in China WANG, Haopeng GUNAWAN, Aldy 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. 2022-03-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/7180 https://ink.library.smu.edu.sg/context/sis_research/article/8183/viewcontent/Analyzing_the_Impact_of_Digital_Payment_on_Efficiency_and_Productivity_of_Commercial_Banks___A_Case_Study_in_China.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Digital payment commercial banks profitability of commercial banks Asian Studies Finance and Financial Management Software Engineering Technology and Innovation
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Digital payment
commercial banks
profitability of commercial banks
Asian Studies
Finance and Financial Management
Software Engineering
Technology and Innovation
spellingShingle Digital payment
commercial banks
profitability of commercial banks
Asian Studies
Finance and Financial Management
Software Engineering
Technology and Innovation
WANG, Haopeng
GUNAWAN, Aldy
Analyzing the impact of digital payment on efficiency and productivity of commercial banks: A case study in China
description 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.
format text
author WANG, Haopeng
GUNAWAN, Aldy
author_facet WANG, Haopeng
GUNAWAN, Aldy
author_sort WANG, Haopeng
title Analyzing the impact of digital payment on efficiency and productivity of commercial banks: A case study in China
title_short Analyzing the impact of digital payment on efficiency and productivity of commercial banks: A case study in China
title_full Analyzing the impact of digital payment on efficiency and productivity of commercial banks: A case study in China
title_fullStr Analyzing the impact of digital payment on efficiency and productivity of commercial banks: A case study in China
title_full_unstemmed Analyzing the impact of digital payment on efficiency and productivity of commercial banks: A case study in China
title_sort analyzing the impact of digital payment on efficiency and productivity of commercial banks: a case study in china
publisher Institutional Knowledge at Singapore Management University
publishDate 2022
url https://ink.library.smu.edu.sg/sis_research/7180
https://ink.library.smu.edu.sg/context/sis_research/article/8183/viewcontent/Analyzing_the_Impact_of_Digital_Payment_on_Efficiency_and_Productivity_of_Commercial_Banks___A_Case_Study_in_China.pdf
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