Author(s)

Yue Hu¹, Lei Yin²

¹Postdoctoral Research Station, China Merchant Bank, Shenzhen, China.
²Deputy General Manager, Greatwall Information Co. Limited, Changsha, China.

While the effect of Financial Technology on banking risk management attracts public and researcher’s attention, how the basic element beneath credit risk, namely client structure, will change with the adoption of technology remains uncovered. This paper intends to figure out whether the adoption of financial technology exerts effect on client structure. Beginning with literature review, we propose related hypotheses on our research question. Applying Fixed-Effect Model, this paper investigates the effect of FinTech on client structure. Estimations show that the adoption of FinTech can improve client structure indeed. Specifically, the proportion of client with nearly no default risk rises while the proportion of default client declines. Then the influencing conduits are examined via Mediating Effect Model. Empirical results demonstrate that FinTech plays this positive role mainly through alleviating information asymmetry.

Financial Technology (FinTech), Client Structure, Default Risk, Chinese Banking

Hu, Y. and Yin, L. (2024) Can Adoption of Financial Technology Change Corporate Client Structure in Chinese Banking?. Journal of Financial Risk Management, 13, 163-181. doi: 10.4236/jfrm.2024.131008.