The impact of digital transformation of commercial banks on consumer finance

In the context of the digital economy and the rapid restructuring of financial business models driven by new productive forces, implementing digital transformation strategies has become a critical measure for commercial banks to enhance service efficiency and adjust credit systems. This study uses longitudinal data of Chinese commercial banks from 2011 to 2023 and employs text analysis methods for empirical research. By constructing an evaluation system for the degree of bank digitalization based on text mining techniques, the study explores the mechanisms through which digital transformation influences the development of consumer credit. Furthermore, a comprehensive consumer finance evaluation index is developed using the information entropy method, providing a quantitative tool to assess both the progress of bank digitalization and the development of consumer credit. The findings indicate that the digitalization of banks significantly promotes the growth of consumer credit, primarily by improving bank profitability, expanding credit issuance, and strengthening risk management effectiveness. The study also finds that these effects vary across regions with different levels of economic development and among different types of banking institutions. Robustness tests and instrumental variable methods confirm the reliability of these conclusions. This research not only clarifies the internal mechanisms through which bank digital transformation affects consumer credit from a micro-level perspective but also provides empirical support for commercial banks in formulating transformation strategies and enhancing consumer finance services.