Business Growth Models Of Internet Banking And Its References For Traditional Banking

Since the opening of the world’s first Internet banking in 1990s, the relationship between finance and Internet has become increasingly close. The emergence of the third party payment companies has further deepened the impact of Internet technology on the financial industry, and along with the infiltration of Internet technology in the financial industry, a brand new form of industry, Internet banking, has risen up and become blooming gradually, the key and typical example of which would be China’s Internet banking which, in recent years, has gained rapid development. As this stage of development falls right into a very important transition period of China’s interest rate liberalization, it has brought a great dual-challenge to the traditional financial industry, and forced it to seek a new way of development in order to survive.At present, the development of Internet banking has covered many fields, such as traditional financial banking, securities, insurance etc., but seen from the actual level of development, those areas in Internet banking that correspond with and function mostly the same as traditional banking industry have achieved longer development periods and reached a higher level of maturity. Recent years, Internet payment, deposit-like financial management, online financing and other similar businesses have produced ’substitution effect’ on clearing, deposits and loans, three major and basic traditional banking industries, and a huge impact on the entire market structure, thus research on this level of the area would be of great practical significance.This paper firstly reviews current research results of the industry, and analyzes and expounds the development of the Internet banking industry and the macro reasons for its rapid development. Internal factors supporting the rapid development of Internet banking industry are believed to be its advanced Internet technology, strong resource investment and innovative ideas, while advantageous external factors are loose regulatory environment and lack of competition consciousness in traditional financial industry. The rapid development of Internet banking has taken the market share of traditional banking, and promoted the development process of interest rate liberalization in China, and because of introduction of new technology and new operation mode, Internet banking may have brought new risk factors to traditional financial industry, all of the above have become challenges for the development of traditional financial industry. Meanwhile, the Internet banking has motivated traditional financial industry to invest more resources in technology and product research and development, and make the traditional financial industry realize the importance of building a financial transaction scene. In addition, the rapid development of Internet banking has facilitates the continuous improvement of China’s relevant financial regulatory system.Last but not least, this paper analyzes specific business development models of Internet banking and traditional industries in details, compares their efficiency, and uses examples to illustrate and research separately on business innovation model, business marketing propaganda model, business operation support, business profit model and mechanism. The development models of Internet banking in the above aspects have much more to do with Internet technology, which serves as advantages in customer interaction, to create a simple and easy operation experience, more accurate and direct marketing cost investment, and more generally unified service standards, therefore easily to get public support. In term of the concept of values, customer flows is the source of profit for the Internet financial enterprises, although product profit model is not much innovative compared with traditional financial products, but the application of customer flow value has reached to an unprecedented high level. However, performance of traditional banks in the above aspects has been considered to be relatively traditional and conservative, major reasons behind which could be negative impact of old concept, product constraints and lack of technological development. At the same time, it should also be noticed that, because of the impact of social responsibility and risk control conception, not all Internet banking development models can be drawn for reference by traditional banks, so the traditional banks should take a new development road combing carrying on its own merits and absorbing highlights from Internet banking. Finally, the author puts forward some specific suggestions on the development optimization of the traditional banks towards Internet Banking. Limited by the academic level, some of the suggestions might inevitably be inappropriate, and the author only hope that these superficial understanding may be able to provide some reference for the future development of traditional banks.