Proceedings of the 2026 5th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2026)

2026 5th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2026)

📍Dali, China🗓️ 11-13 September 2026
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Digital Transformation and Bank Profitability: Evidence from Chinese Commercial Banks

Authors
Xinyi Hu1, *
1Sanda University, Shanghai, 201209, China
*Corresponding author. Email: y250251101@st.sandau.edu.cn
Corresponding Author
Xinyi Hu
Available Online 10 November 2026.
DOI
10.2991/978-94-6239-825-2_48How to use a DOI?
Keywords
Digital Transformation; Bank Profitability; Revenue Enhancement; Risk Mitigation; State-owned Commercial Banks
Abstract

Amidst the background of FinTech penetration and intensified industry competition, digital transformation has become a key path to reshape the operational management of commercial banks. Based on panel data from commercial banks, we employ two-way fixed effects regression models and Double Machine Learning (DML) models to investigate the micro-level mechanisms through which digital transformation affects banking operations. The study reveals that: First, digital transformation significantly enhances the profitability of commercial banks, and this finding remains robust after various robustness checks and controlling for potential endogeneity issues; Second, this positive effect is primarily achieved through two parallel micro-level paths: promoting “revenue enhancement” and strengthening “risk mitigation”; Third, the promotional effect of digital transformation on the profitability of central state-owned banks is more significant. Our conclusions provide important theoretical basis and practical insights for commercial banks to formulate optimal digital transformation strategies and for regulatory authorities to improve relevant policies.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2026 5th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2026)
Series
Advances in Economics, Business and Management Research
Publication Date
10 November 2026
ISBN
978-94-6239-825-2
ISSN
2352-5428
DOI
10.2991/978-94-6239-825-2_48How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Xinyi Hu
PY  - 2026
DA  - 2026/11/10
TI  - Digital Transformation and Bank Profitability: Evidence from Chinese Commercial Banks
BT  - Proceedings of the 2026 5th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2026)
PB  - Atlantis Press
SP  - 491
EP  - 499
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-825-2_48
DO  - 10.2991/978-94-6239-825-2_48
ID  - Hu2026
ER  -