Risk Analysis on Chinese Commercial Banks in the Context of FinTech Empowerment

Abstract

In recent years, most commercial banks are facing the innovation of information technology and digital technology in the context of financial technology, showing a positive development trend. Under this positive development, how to use financial technology to identify risks and effectively improve the efficiency and quality of risk management will become the core competitiveness of commercial banks in the future.Therefore, Studying risk management in the context of China's commercial banks with FinTech capabilities is crucial.This paper collates and summarises the results of previous studies through literature research and finds that there are two types of risks that persist in most commercial banks under the technological empowerment of FinTech, namely liquidity risk and credit risk. In addition, two additional risks, namely technology risk and data risk, are innovatively proposed in the context of FinTech-enabled commercial banks. After explaining in detail the four types of risks, namely liquidity risk, credit risk, technology risk and data risk, a detailed analysis of the above two main types of risks, namely liquidity risk and credit risk, is conducted through relevant data. Based on the problems identified, the paper proposes measures for Chinese commercial banks to cope with the above four types of risks in the context of FinTech-enabled commercial banks. This paper not only completes the current research system and framework, but also aids Chinese commercial banks in raising the level of their own risk management, which would promote long-term growth of the entire financial market.