A Research On The Influence Of Internet Finance To Commercial Banks And Its Countermeasures

Since 2012, the internet finance has been growing rapidly in China. New financial services such as the third-party payment, internet financing and on-line wealth management have entered our lives without much notice. Therise of non-bank internet finance such as Ali Finance has brought profound changes to the traditional banking industry, and makes certain influence and impacts on the assets, liabilities and intermediary business of banks. Under the background of internet finance, as a representative of traditional banks, what kind of influence do the commercial banks received, and how the banking industry should do to respond the impacts of internet finance actively to make a successful transition, were topics that all banks should take into deep consideration.The article firstly reviewed the documents and reports about the development of internet finance and its impacts on commercial banks. Then, on the basis of summarizing the deep connotation and major characteristics of the internet finance, this paper describes the major mode of internet finance. By applying Ali finance as an example, this paper analyzes the reason of internet finance’s rapid development and its influence on traditional commercial bank, which is mainly related to the aspects of commercial bank’s profit, operating costs and management.This paper draw a conclusion that the internet finance makes certain influence and impacts on traditional commercial bank business, it also brings opportunities to the development of commercial banks. They share a combined relation of competition and cooperation. According to the analysis of SWOT model, we can find that, compared to these internet financial companies, the commercial banks have advantages in capital, customer, and risk management, while commercial banks is weak due to poor customer experience, low efficiency business model and serious product homogeneity. Secondly, the external environment analysis found that, though facing multiple oppression of financial disintermediation and interest rate liberalization, the commercial banks still have the opportunity to cooperate with internet finance to seek win-win cooperation. Therefore, commercial banks should adopt strategies of building universal banks, improving customer experience, promoting information process, attaching great importance on the long tail customers and strength cooperation with the internet finance.