A Study On The Countermeasures Of Commercial Banks In The Background Of Internet Finance

The year2013witness the booming of internet finance, which leads totremendous change to the whole financial system. As the core of domestic financialsystem, commercial banks are impacted enormously by the vigorous development ofinternet finance. Many relevant researches have been done by domestic scholars.Based on the above background, this article aims to discuss countermeasures ofcommercial banks.This article firstly introduces the definition of internet finance and its currentsituation and tendencies. Secondly, this article analyzes the impacts on commercialbanks brought by internet finance from the perspective of core competence theory aswell as financial intermediation theory. According to the analytical framework basedon the core competence theory, this article proposed several coping strategies forcommercial banks. Lastly, this article put government behaviors into consideration.The booming of internet finance affects commercial banks in many ways. This article holdsthat internet finance undermine several functions of commercial banks such as its function ofreducing transaction cost and participation cost, and its function of being payment intermediaryand information intermediary. But internet finance does not affect active risk management ofcommercial banks. From the managerial point of view, the key advantages of internet finance areits advanced technology and organizational model.Therefore, commercial banks should treat internet finance as a future trend of financialdevelopment, stick to long-term strategies and avoid short-term behaviors. Commercial bankshave already been a pool of high-quality financial talents and possess sufficient capital. Theyshould take these advantages and master the essence of internet finance such as its organizationmodel, its technical innovation and service philosophy, improve its operation philosophy and workflow.Only in this way, can commercial banks develop steadily and healthily and survive the shockof internet finance as well as the wave of financial reformation in the future.