Research On the Impact of Credit Risk in Commercial Banks Under the Background of Fintech

Abstract

In recent years, with the rapid development of technologies such as artificial intelligence, big data, and blockchain, FinTech has become the core driving force for the transformation of the global financial system. As the backbone of traditional finance, commercial banks face dual challenges of digital transformation and credit risk management. Based on this background, this article systematically explores the impact mechanism and response strategies of financial technology on commercial bank credit risk. Through literature review, this paper summarizes the domestic and international research trends on the relationship between financial technology and commercial bank credit risk, focusing on dimensions such as digital transformation, construction of financial technology subsidiaries, and third-party cooperation. Commercial banks have promoted the intelligence of business processes through large-scale technological investment, but the innovative practices of subsidiaries in areas such as green credit and rural finance have also exposed problems such as insufficient technological adaptability and regulatory coordination. Based on this, further analysis was conducted on the causes and impacts of credit risk in commercial banks under the background of financial technology. The risk characteristics include data security vulnerabilities, lack of model interpretability, and cross platform compliance risks. Therefore, this article proposes four-dimensional management strategies: firstly, accelerate digital transformation and build an open and collaborative technology ecosystem. The second is to improve the compliance framework, balance innovation incentives and risk prevention and control; The third is innovative regulatory technology, which utilizes sandbox testing and real-time monitoring to enhance regulatory efficiency. The fourth is to strengthen data governance and ensure information security through encryption technology and permission management. Financial technology is not only a tool innovation, but also a reconstruction of the financial ecosystem, providing theoretical support and practical reference for the sustainable development of the banking industry.