Research On Business Model Transformation Of Commercial Banks Under Internet Finance Environment

Internet finance initiate from engaging the financial business by Internet companies using its technological advantages to get involved in the financial sector. This new form of finance has characteristics of low cost, high efficiency, wide coverage, information transparency. The Internet spirit of "opening, cooperation, equality and sharing" is also one of the intrinsic causes which allow Internet finance growing fast. Compared with the traditional commercial banks and other financial institutions management pattern, the Internet financial mode has many specific characteristics. The rapid development of Internet finance is weakening the financial intermediary function of traditional commercial banks, and the intermediate business income of traditional commercial bank is also influenced. The development of the Internet finance has been affected the business activities and competition of commercial banks in the financial markets in many ways.Only by transformation of business model, can our country’s commercial banks remain invincible in the competition in the financial markets. The goal of transformation can be summarized by "principle part" and "dominant position" this two word. The principle part means the traditional management pattern and the Internet financial mode can fuse organically. The traditional commercial banks should be built into "Internet banks" which can make full use of Internet technology and possess the Internet spirit and then become the main body of the Internet finance. Dominant position refers the commercial banks which have the prominent status should occupy the dominant position in the Internet finance keeping the health and sustainable development of Internet finance. To achieve this goal, commercial banks should take effort to layout on Internet financial actively, and accelerate the transition from "financial Internet" to "Internet finance". Establishing the objective of transformation should follow the integrative principle, level principle and building principle. In the aspect of concrete implementation way of achieve the goal, we should strive to build payment intermediary platform, the credit intermediary platform and credit intermediary platform, and build the integrated platform on the basis of the three platform. The article points out that to cooperate with Internet enterprise is the basic approach for commercial banks transformation. A game theory method is used to demonstrate the issue thoroughly.To cope with the challenge from Internet finance, many commercial banks are working on the transformation of business model actively. Four kinds of typical transformation mode can be summarized. The first one is mode of commercial bank’s traditional business Internet-enabled which is delegated by China Merchants Bank. The second one is mode of commercial banks cooperating with Internet companies which is delegated by Industrial Bank. The third one is mode of commercial banks self-built e-commerce platform which is delegated by China Construction Bank. The forth one is mode of direct banking which is delegated by Beijing Bank. In this paper, detailed introduction and analysis of a series of steps in the process of transformation take by these commercial banks are expounded. After discussed the necessity and feasibility of commercial bank management pattern transformation under the Internet financial environment, the author put forward the strategy of the commercial bank business model transformation. The basic idea of transformation is using the Internet thinking to change the traditional management idea, and improving service manners and expand service areas with the Internet technology and Internet spirit.The research methods this article used include: literature research, case analysis, comparative analysis as well as inductive and deductive method. Among them, the relevant literature research is taking the results and literature of business model transformation of commercial banks and Internet finance which is published currently as the research resources. The case analysis reflected on introduction and selection of several typical experienced banks which business model transformation has prominent characteristics. Comparative analysis and inductive deductive method is showed through the analysis and comparison of our country’s commercial bank business model transformation process and the status quo. Moreover, the path and mode of commercial bank management pattern transformation under Internet financial environment is put forward from the Angle of the combination of theory and practice.The center argument of the paper is that commercial banks management pattern must transform to adapt to the development of Internet finance. This article is taking the transformation of commercial banks business model as the research object, taking Internet financial environment as the research background, and putting forward the goal, measures and strategies of commercial bank management pattern transformation under Internet financial environment as the expected research conclusion.