The Impact of Digital Transformation on Rural Commercial Banks

The rapid development of financial technology has promoted the digital transformation of rural commercial banks, which is crucial to enhance competitiveness, support "agriculture, rural areas and farmers" as well as rural revitalization. Therefore, this paper attempts to explain the impact of digital transformation on rural commercial banks, and provides optimization measures. Based on the financial data of rural commercial banks from 2013 to 2023, this paper uses a multiple linear regression model to explore the impact of digital transformation on them. It is found that digitalization and cost-income ratio have negative effects on ROA in the short term, but in enterprises with good cost control, digitalization can improve profitability. Non-interest income has had a significant negative impact on ROA in recent years, and reliance on a single source of income may weaken earnings. The findings suggest to strengthen cost control, promote income diversification and government support, and provide guidance for the digital transformation of rural commercial banks.