The Influence Of IT Finance On Commercial Banks In China

With the progress of Internet information technology and big data technology, the IT finance has rapid development in recent years. The expanding IT finance will inevitably affect the traditional commercial banks, encouraging commercial banks with their innovation and transformation in dealing with the impact of the IT finance. In this background, studying the influence of the IT finance on the operations and business models of commercial banks is very necessary.Internet finance refers to a emerging financial sector that use the Internet and information technology to make innovations in aspects such as technology or channels. According to the degree of the combination with Internet technology and big data technology, the IT finance can be divided into three type:channel-innovative, crowd-funding and big data. Large numbers of mobile Internet users and the development of Internet technology and big data technology are the supply-side factors of the birth of Internet finance; The rapid financial demand expansion brought about by the rapid economic growth is the demand-side factors of the birth of Internet finance.The impact of Internet financial on commercial banking business is mainly concentrated in the liabilities businesses, otherwise a small amount in the assets business and intermediary business. In terms of assets business, several Internet financial businesses including online P2P lending, crowd-funding and online supply chain finance have impact on commercial bank loan business. But due to the limited overall size, the impact on commercial banks is small. In terms of liabilities business, the Internet currency funds represented by "Yuebao" caused great impact on deposits of commercial banks since the second half of 2013, directly led to a decrease in the deposits of commercial bank in China. In the aspect of intermediary businesses, the Internet financial influences the commercial banks’ intermediary businesses from two aspects:On one hand, third-party payment will squeeze out part of the settlement businesses of commercial banks; On the other hand, the hot Internet monetary fund market could lead to more custody income for commercial banks.The influence of the Internet finance on commercial banks’management model mainly in the business strategy, risk management mode and marketing mode. The "long tail effect" in the Internet industry forces commercial banks to differentiation, exclusive of the competition according to their own advantage, in order to satisfy the "fragmentation" financial needs of customers; Big data technology provides a new paradigm for commercial bank risk management, making commercial banks reform from two aspects of information collection and information processing; The marketing model based on "user experience" forces commercial banks to improve the marketing system by means of community banks.