Internet Financial Impact On Commercial Bank Profits

When it comes to the financial industry, the first to think of is the capital and data, as a service industry, the financial sector has been absorbing the cutting edge of information technology, continuously improve service quality, to reform the service model, and constantly open up new service areas, so the capital and the data is also the root of the financial industry. Within 15 years since new century, the level of domestic development of network technology has been upgraded several grades, Internet, for example, from the beginning of the network communication, access to information, entertainment and other functions to LAN control, digital information, and networked virtual economy, the changes brought by network is amazing.The same is true for the financial sector. Some have called this era is the Internet age, in terms of the financial sector; it is also a data explosion era. Traditional business model is impacted by the new things, relying on the advantage of the collection, analysis, and storage, cloud computing gradually into the vision of the masses. In the financial industry, new financial products and services which relying on Internet technology is also quietly changing the entire financial industry, Internet financial thus attracted much attention.After 2010, the Internet financial has entered a rapid development period, the impact of for financial entities; especially for the commercial bank has appeared gradually, and with the development and expansion of the Internet financial, the competition is likely to more intense in the future, may even change the current domestic financial landscape, shock the financial status of the commercial bank. For commercial Banks, therefore, analysis and research the development of the Internet financial model in-depth, and actively learning and response will be the important links of the commercial Banks continue to grow. So both in theory and reality, the research of Internet financial has very significant meaning.In addition, the Internet financial breaks through the understanding of the pay structure, and enrich people’s financial choices, on the other hand also to ease the financing difficulty of small micro-enterprise, to some extent. Commercial Banks and Internet companies is both competitors and partners, to strengthen the cooperation with Internet companies, whether commercial Banks or Internet financial, it will have a positive impact.Under the background, in this paper, the impacts of Internet financial on commercial bank profits were studied. First of all, this article reviewed the domestic and foreign scholars’view as to whether the Internet banking will have an impact on commercial banks, and the influence of the degree, and refer to the literature. The article briefly introduces the financial industry, Internet technology and the combination of the two, this paper expounds the process of producing of Internet financial at the historic moment under the new situation and the cause of the rapid development. This paper argues that, competition between Internet financial companies and commercial banks is inevitable. Currently the financial impact of the Internet on commercial bank focused on the financial position of commercial banks, management philosophy and style as well as profits, while the focus of this paper is to study the financial impact of the Internet on the commercial banks’earnings. In this context, this article put the third-party payment platform, P2P network credit and money market funds three models as a starting point, analysis the the influence on commercial bank deposits, loans, and the intermediary business, and selects specific data of the 16 listed Banks in 2006-2014 years for quantitative research.This paper argues that the three business model mainly through commercial Banks’interest income and fees and commissions to influence the profitability of commercial Banks. However, given the overall size of the gap between Internet Financial and commercial banks is large, as well as problems of network of financial, so now it still cannot to cause substantial impact on the commercial banks.But from another point of view, although the network financial would not be enough to touch the foundation of the entire banking system, but its existence and growing is the biggest boost to the banking reform. So this article concluded that Internet financial impact on commercial Banks more embodied in the "catfish effect"-that is, the impact of commercial banking as well as effectively promotes the innovation and transformation of commercial Banks.Then, to promote the development of the commercial Banks in the future, this article puts forward some opinions and Suggestions, hope to improve the Internet finance and promote the healthy development of commercial Banks, and to provide the reference for the construction of harmonious and stable economic environment.