Explore The Commercial Banking Business Network

Before the illustration of the networking of the commercial bank, the paper has defined several important concepts, including commercial bank, business of commercial bank, networking of commercial bank and network bank. According to the paper, by the networking of commercial bank, we mean that the financial institution establishes a new type of banking business on the banking service network integrated with the bank's computer as the main body, the bank's self-built network or public network as the transmission media and the computer of the enterprise of individual as the terminal. The network bank is the bank or virtual web site that provides various kinds of financial services with the help of Internet or other networks. With regard to the differences between the network bank and traditional commercial bank, the paper holds the points including the difference on branch-setting and marketing concepts, the business scope, the profit channel and the difference caused by electronic currency. etc. Based on the aforesaid terminology, the paper analyzes the major characteristics of the networked commercial bank. The network economy, developed from the modern information technology and Internet, will not only change the modes and rules of the macro-economy and the traditional economic theories, but also will pose influences on the subjects of the micro-economy in terms of concepts, behavior modes, behavior principles and communication methods among individuals. The financial sector, the core of modern economy, and the banking industry, the hub of the social capital movement, will be mostly and deeply influenced by the network economy. The networked business of the commercial bank is a new type of banking business based on the network technology. Thanksfor the development of information technology, the boundary of thecommercial bank will blur and quite a lot of non-bank financialintermediate organizations will take on the business that istraditionally of high barrier. In order to be more efficient, some ofthe traditional banking business will probably be independent, suchas the management of the credit card, ATM, savings account, bankdatabase, etc. The bank may contract with the infOrmationtechnology company to finish the foregoing tasks. The bank has togive out the fOregoing traditional banking business because it has nochoice but to acknowledge that it faces strong competition in manytraditional banking business. The commercial bank itself isundergoing some changes unnoticeably, featuring more of theinformation technology Wth the information technology andInternet, the networked commercial bank may provide value-addedcomprehensive financial service. As a result, the tangible currencysuch as the traditional bank note, check, promissory note, draft, etc.,will fade away from the reality and the electronic currency willbecome the carrier to facilitate the daily transaction. In the networkbank, there are no fixed place and staff members, if the client hasaccess condition to the Internet, he may under the security protection,access the bank any time, anywhere and anyhow convenientlyinstantly and without the limit of time and space. At that time, theabove-mentioned 3 "A" will begin to penetrate every factor of life.The Internet economy is the information economy. As theinformation flow speeds up, the market wil1 be more variable. As themodern financial sector has become highly professional artdintelligent, the bank has to focus on the risk management oftechnology and operation.Wth regard to the networking of the commercial bank, thepaper has analyzed the causes from 8 factors as follows: the Internethas not only br...