Abstract

This study aims to investigate how financial technology innovations enhance the performance of Chinese commercial banks, specifically those listed on the China Stock Exchange (CSE). Utilizing a descriptive research design and secondary data collection methods, the research analyzes financial reports and employs a panel and quantitative approach. Data from the period 2007-2023 were examined using descriptive statistics and multiple linear regressions to address the research questions. The sample consists of commercial banks listed on the CSE, and performance indicators include Return on Assets (ROA), Net Profit Margin (NPM), Net Income Margin, Profit after Tax (PAT), Return on Equity (ROE), and ATM and e-banking services. Financial technology tools such as WeChat, Smart Cards, and Mobile & Internet Banking Services were used to measure virtual banking services. Control variables considered in the study are liquidity, credit risk, capital, and size. The results indicate a statistically significant positive relationship between financial technology innovations and bank performance, suggesting that the adoption of these tools enhances the financial outcomes of banks.