The Study of Chinese Listed Bank’s Efficiency Growth Mode in Internet Finance Era—Based on Full-Combination DEA-PCA Model

Abstract

In the era of internet finance, the scholars and practitioners around the world are paying attention to how to enhance the competitiveness of commercial banks by choosing the appropriate growth pattern of business performance. This paper uses empirical research to discuss the growth model of business performance within 16 listed commercial banks in China by full-combination DEA-PCA model. We find that there are significant differences on the performance evaluation of each listed bank due to whether they consider internet factor or not. Furthermore, we apply PCA model which is based on the result of full-combination DEA model to classify the growth pattern of business performance into “Internet Business Oriented” which enhances performance by internet finance innovation and “Traditional Business Oriented” which maintains performance by traditional banking business. According to the performance of each listed bank in the PCA analysis chart, we classify these banks further into four groups: “Emphasis on internet business”, “Emphasis on traditional business”, “Emphasis on internet business with overburdened traditional business” and “Balance between internet business and traditional business”. Each group of banks has its own strength and weakness. At last, according to the characteristics of different bank groups, we put forward the corresponding efficiency strategy recommendations.