Research On Evaluation Of The City Commercial Bank Competitiveness Under The Background Of The Internet Finance

A rapid penetration of information technology in the financial sector led to the generation of Internet banking, which has changed the traditional financial landscape. City commercial banks mainly located to fill a vacancy of market and to support urban construction market. As a traditional finance, it will inevitably be affected by the Internet finance. Currently, city commercial banks developed in different ways, most of them have smaller assets, single profit model and homogenize seriously which are facing more serious situation than other kinds of banks. The advent of the era of the Internet financial age is both opportunities and challenges to city commercial banks which should seize chances, combine the advantages of internet finance with its own characteristics, properly handle the influence of the internet financial, and take the initiative to adapt the development of the internet financial.Based on the perspective of city commercial banks, this paper defines the concept and features of Internet finance and elaborates the theory of city commercial bank competitiveness evaluation. It also analysis the impact and influence on city commercial banks by the development of Internet finance from the aspects of service channel, method of payment,deposit flows, the traditional sources of income and financing. According to the principles of the construction of index system, this paper evaluates the city commercial banks’ competitiveness under the background of Internet finance from the perspective of real and potential competitiveness. Using cluster screening method to finalize thirteen indicators of seven categories, and give weight to each selected index by Analytic Hierarchy Process.Ranking the indicators’ scores of five state-owned banks, six joint-stock banks and seven city commercial banks.The ranks are compared together with raw data and the advantages and disadvantages of competition are pointed out. Based on the results of empirical analysis, this paper argues that the city commercial banks have a strong real competitiveness, but the Internet financial innovation, corporate governance and the staffing should be strengthened as potential competitiveness. From the analysis above, the paper concludes that city commercial banks should identify market and product position, improvethe corporate governance structure, and strengthen personnel training. At the same time, it should seize the opportunities of the Internet age; deepen reform and innovation, develop electronic banking to enhance their competitiveness and overall financial services by building core potential competitiveness.