On The Impact Of Internet Finance Upon Traditional Commercial Bank

The year 2013 is an extraordinary year for all the finance field. Supported by the internet spirit of openness, equality, co-operation, sharing, internet companies such as Alibaba who developed Alipay, Yu’ebao, Ali Loan has disturbed the traditional financial institutes. Financial banks are building and developing their online service systems, exploring their businesses, and developing new financial products one by one, in hoping that they can find a new road to the further development of traditional finance. They are exploring in the road to initiate traditional finance and taking part in the internet finance.Is internet finance a new branch of finance? How far and from what aspects did internet finance influence traditional finance? The fact that commercial banks are the main roles in the ‘financial revolution’ and the important representatives in the financial system justified that this paper will concentrate on the influence of internet finance on commercial banks. Meanwhile, this paper will 1) research on the motives of the development of internet finance with the guide of financial creation theories in order to clarify all the doubts; 2) analyses all kinds of modes of internet finance from the perspective of business model; 3) build a system to analyses the degree and aspects that the internet finance influences traditional finance.This paper follows the following logic: firstly, to accumulate the theory basis which will guide the research to go; then, to explore how internet finance has come to be and expose the essence and operation system of internet finance by the method of business model; thirdly, to research on the degree and aspects the internet finance influences traditional finance based on the influence system built; lastly, to conclude the relationship between internet finance and traditional finance with the above research and to suggest to the development of financial banks, to explore the development of financial banks.