Research On The Challenges Of Internet Finance To Commercial Banks And The Corresponding Countermeasures

As the Internet has been widely accepted and recognized worldwide, the Internet ischanging or has changed people’s daily life.With the collision of traditional industries and theInternet, a new industry was born. From the financial sector, the online banking, mobilepayments, the third-party payments, Internet banking, fund-raising by network, virtualcurrency and other innovated business are undergoing rapid development, thus, a newfinancial model named Internet finance appeared. As the Internet finance penetrate totraditional financial sectors gradually,the banking sector has to share their customers,sourcesof funds and profits with competitors,bringing great challenges to the management ofcommercial banks,which is dominant the financial sector.Therefore, it is necessary to studyhow the Internet finance operations. It is of great significance for commercial banks to knowwhat should do facing the challenges of Internet finance.Ant Financial Services Group provides specialized services for SMEs and individuals.Itis established by Alibaba Group based on Alipay. ANT Financial integrates many starproducts such as Alipay, Paypal wallet, Yuebao, Zhaocaibao,etc. Alibaba Group is the earliestto enter the Internet financial industry and has the widest and the most complete services.Ithas become the leader because of its own mature big data cloud computing and internal creditrating system.First,this paper begins with the overview of scholars’research,then make an introductionof Internet finance status quo in China,including the definition,three developmentstages,operational characteristics and the main mode, making theoretical preparation for therest.Then,taking ANT Financial for instance, described in detail how does it pose a challengefor commercial banks through Paypal, Yuebao, micro-loan business in Liabilitybusiness,Assets business and Intermediary business,the so called basic functions commercialbanks. It is worth noting that the brilliant achievements made by financial services group likeANT related to underlying support from big data, cloud computing and credit system. Withthese Internet finance enterprises grow step by step, The three traditional business ofcommercial banks are experiencing the serious challenges. At last,in order to makecommercial banks realize great development in the Internet era,some proposals have beenoffered from the angel of liability, asset and intermediary business respectively.