Development Strategy Of Small And Medium-sized Banks Under The Background Of Internet Finance

In 2013, large numbers of internet financial products emerged in China, such as Yu Ebao. The Internet Finance is a new model of financial service, which integrates internet technology to financial industry. It makes the traditional financial services more efficient and more convenient, but cost less. It can provide financial services for more people and expand the depth and breadth of financial services. Compared with the traditional financial services, Internet Finance has huge advantages. Therefore, this new financial model certainly has impact on traditional financial institutions and products. In our country’s financial system where banks occupy an important position, small and medium-sized banks have gradually become the motivation of financial development. The rapid development of the Internet finance will inevitably lead to fierce competition in the financial industry, and at the same time bring opportunities and challenges for the development of small and medium-sized banks. In this situation, it has great significance to analyze how small and medium-sized banks deal with the competition of internet finance, which can promote their development and enhance the strength of China’s financial industry.At first, the author introduces the concept, characteristics and patterns of Internet finance, as well as its development at home and abroad. Then, the author summarizes the current situation of our country’s small and medium-sized banks and the problems in their development. On this basis, the author analyzes the positive and negative impact of the Internet finance on small and medium-sized banks from different aspects. Finally, through SWOT, the author brings forward that small and medium-sized banks should give full play to their advantages. And furthermore, small and medium-sized banks should also make reform and innovation on their development strategies, business models, products and services as well as risk management. In this way, small and medium-sized banks can enhance their strength and competitiveness force and competitiveness so as to achieve sustainable development under the background of Internet finance.