Research On The Business Model Of Commercial Banks Base On Information Technology

With the accelerating of economic and financial reform in China, the business environment of commercial banks has changed significantly, the competition between banks is becoming extremely intense. The rapid development of interest rate liberalization reform, direct banking and information technology posed a severe challenge to the traditional business model of commercial banks. Commercial banks are in urgent need to promote the transformation of the business model and revenue structure, from a traditional "funding agency" to "integrated financial services provider". Against this background, the integration of financial services and information technology has become an important way to build the core competitiveness of commercial banks. Commercial banks need to think about how to use information technology to improve business management, and enhance business innovation capabilities to provide better service to the customers.This paper starts with the research on the impact of interest rate liberalization in banking industry through the study on the history of interest rate liberalization in United States, Japan, Chinese Taiwan and Hong Kong, pointing out commercial banks’ profit, balance sheet structure and pricing management will be affected by interest rate liberalization. In order to lighten the pressure, commercial banks will adjust credit structure, increase the proportion of assets with both high-yield and high-risk. Commercial banks confront new challenges on risk management, improving the capabilities of identifying risks and enhancing interest rate risk and liquidity risk management will be top priority. Then makes a deep analysis of the rapid development of online financial in recent years, pointing out customer base of commercial banks is facing huge impact, banks are gradually marginalized, huge loss of low-cost savings increases the operating pressure, commercial banks need to optimize business model immediately. By summarizing the successful business model of Santander and China Merchant Bank, provides business ideas including facilitating direct banking, optimizing business process, controlling operating costs, improving abilities of using information, improving customer retention and enhancing overall risk management for commercial banks base on information technology.