Development Of Small And Medium-Sized Commercial Banks In The Background Of The Internet Finance

With the continuous popularity of the Internet, Internet enterprises with the adva ntages of big data, cloud computing and social networking has accumulated a lot of c ustomer resources. Gradually, their businesses are extended to the financial field and a new financial mode which is called the internet finance is formed. Internet finance a ppeared explosive increase since 2013. However, the situation of traditional bank is s harply contrasted with the internet finance. In January 2014, the deposit absolute amo unt decreased 944.7 billion. This change makes the whole banking system worried. E specially, this decreasement challenges SMCBs which have relatively weak financial strength, few outlets and similar service customers with the internet finance. Therefor e, how to explore further development in such a competitive environment is concerne d by SMCBs.This paper discusses the question how the SMCBs develop under the background of the Internet finance. First of all, this paper studies the concept and characteristics of the Internet finance. And then, this dissertation clarify the impact of the internet finance, by analyzing the relevant business bank balance sheet and income statement, how do these different modes of the Internet finance influence SMCBs' businesses and profits is answered. Through these analysis,we can see different modes of the internet finance has different impacts on SMCBs, To be more precise, the Internet finance product sales and third-party payment platform affect banks more. And SMCBs' impacts on middle business income are greater than those on interest income. Next, this paper has selected a SMCB as a sample and studied its developments under the Internet finance separately. By taking some measures like establishing a direct bank and creating new kind of financial products, this SMCB has achieved certain success. Their customer scale has increased and their products sell well. But at the same time, some problems still exist. For instance, the operation mode is not independent, the system of the products is not perfect enough as well as the risk regulation system should be improved and so on. Through this case, the advantages and existing problems of SMCBs are showed, and some countermeasures as well as suggestions are put forward finally.