Impact Of Internet Finance On The Joint Stock Commercial Bank

Internet finance is a new business model that arises in the recent years. It refers to the Internet companies engage in financing, payment and act as information intermediaries through the Internet and mobile communication technology. The rapid development of Internet finance not only challenges the traditional business model, but also has a great impact on the traditional financial industry.Not only the pattern of traditional financial industry has changed, but also the commercial banks of our country which are the most important links in the traditional financial industry are impacted dramatically. However, among the commercial banks, the joint-equity commercial banks are influenced by the Internet finance most directly, for the reason that the joint-equity commercial banks and internet financial companies have direct conflicts of interest, namely the main customers of them are clusters of small customers in the market.In such a context, this study first summarizes the current development of Internet finance in China, including the reasons of Internet finance emergence, the main characteristics and the development of several major businesses of Internet finance.Second, this study selects China Merchants Bank as the representative of the joint-equity commercial Banks in China. Drawing on financial function theory, combined with the specific situation of China Merchants Bank, this study analyzes the influence of Internet finance on the functions of payment and clearing, funds raising, risk diversification and asymmetric information problem solving.Third, this study proposes the coping strategies. We contend that China Merchants Bank should develop with Internet financial companies synergistically, absorb excellent talented persons constantly, enhance its own managerial capability, continue to improve the existing small and medium-sized enterprise financing service and develop the differentiation of retail businesses.Finally, this study concludes that the joint-equity commercial banks in China should continue to deepen the reform, engage in the transformation of development and collaborate with Internet financial companies actively to strive for the prosperity and development of financial industry of China together.