Competitiveness Of Chinese Commercial Banks In The Background Of Internet Finance

In the process of development, Chinese commercial banks experienced many different opportunities and challenges. In recent years, with the advancement of Internet technology and the deepening reform of finance, Internet finance has stepped into people’s horizon and made tremendous development rapidly. This phenomenon has a deep influence on Chinese commercial banks, which not only faced competition within the financial industry, but also faced intense competition of cross-industry.This paper focused on the background of Internet finance and chose competitiveness of Chinese commercial banks as subject of this research. In theory, ths paper applied the idea of competitive intelligence, and attended to explorer the Internet finance’s influence on the competitive of banks. In order to analyze the cross-industry competition, we introduced the theory of enterprise gene investigation, which provides a new perspective to the study of commercial banks’ competitiveness. In practice, this paper constructed a new system to evaluate the competitiveness of commercial banks, which could make a contribution to commercial banks’ improvement.In the second part of this paper, we introduced the theoretical foundation specifically. First, we reviewed the development of the theory of competitiveness of enterprises chronologically. Then, we gave the definition of competitiveness of commercial banks. Meanwhile, evaluation indicators and evaluation methods of commercial banks’ competitiveness were reviewed and analyzed. In addition, we introduced the corporate gene theory and built an extended model, which provided the basis for the duplication of corporate gene, the enhancement of banks’competitiveness and the construction of evaluation system of commercial banks.In the third part, we analyzed the concept and the development of Internet finance. We also summarized the main business models of Internet finance. Then we discussed the genes of the Internet finance with the theory of enterprise gene and explained its impact on Chinese commercial banks’competitiveness.Competitiveness of Chinese commercial banks in the background of Internet finance is the core content of this paper. We kept an eye on the impact of the Internet finance and built the evaluation system of commercial banks competitiveness. The selected indicators are divided into two categories. One is a manifestation of the banks’ natures. The other one is a manifestation of genes of Internet finance. The former is subdivided into three categories, namely, profitability, safety and liquidity of banks. The latter is subdivided into four categories, namely, novelty, scale, growth, products and services.In the process of evaluation, we chose data of 2012 and 2013 from 10 banks and analyzed it with the method of factor analysis. According to the results of the analysis, this paper summarized the bank’s four main factors, namely, scale and market performance, security efficiency, reality and potential profitability, ability to develop. We also made an analysis of each main factors respectively through the banks’ performance.Finally, we took a comprehensive consideration of the results of the factor analysis, and the situation of competition. We made several recommendations for Chinese commercial banks to enhance their competitiveness. In addition to the pursuit of scale effect, the security efficiency, innovative products and services, the mangers of banks should also make efforts to attach importance to the construction of competitive intelligence. Only in this way, could Chinese commercial banks build and maintain their competitive advantage.