Study Of The Development Strategy Of China's Online Banking

Coming to the 21st Century, we have been experiencing the revolution in information technologies all over the world. Basing on the organic integration in digital, fibre-optic and multimedia technologies, internet has linked up hundreds of million of business and personal entities across boarders. The era of network economy, which is characterized by computer network communication, coming after ages of agricultural economy and industrial economy, is actually leading to an even deeper evolution to our economy. In China, the transition period for entering WTO will end in 2006 and the financial market in China will be completely opened. Adding also the factors of the rapid growth of internet development and the accelerating globalization in the finance industry, the banking industry, being the core of new China economy, is facing huge opportunities and big challenges. Internet banking, as an icon of electronic banking, has become a clear trend in the banking industry and has demonstrated a deep rising slope.Internet banking can create a wider and more liberal space to traditional banking business development, can greatly enhance the competitiveness of the banks. Internet banking is a major distinguishing feature is that the help of "network" business, rather than tangible fixed place for the business. This feature decided on the one hand, banks are not limited by the customer geographic location and time constraints for developing business,thus not subject to government regulatory authorities on the new networks subject to the relevant provisions, the degree of liberalization in the financial greatly increased; On the other hand, the degree of modernization of internet banking and high-tech support, making the development of new banking financial products or new projects with the financial services basis, and this determines the banking market business expansion of more extensive.The global commercial banks have reached a consensus on that on-line business is the future developing trend of banking operation. For the bank,internet banking is not the least a separate business, but the repositioning of the role of the traditional bank in future's information society and the remake of its social function. The banking industry is a high risk industry, in the course of its business, always accompanied by risks. As an extension and innovative of traditional bank, because of the openness of the Internet and online banking in the technical complexity, internet banking faces its own characteristics of the risks. Prevention of the risk is always the most important and crux of the problem in the development of internet banking.On the basis of analyzing characteristics of internet banking, the article expounds of influences on traditional bank and the complementary relations between Internet Banking and traditional bank. Combined practices engaged in the work of bank for many years, the author has pointed out the current situation, development characteristics and development trend of our country. In view of all kinds of risk problems that exists at present internet banking of our country, combining international successful experience with the actual conditions of our country, the article provides the development strategy, including of strategical plan of internet banking services, of measures of risk guard and strategy of the finance supervision on Internet Banking of our country , to promote the healthy and orderly development of internet banking in our country.