Study On Online Financing In Domestic Commercial Banks Under New Economic Environment

The third-party payment and online financing emerge under the worldwide development of online economy. They bring faster payment and more choices of financing, making people's daily life and career more convenient and active. Meanwhile, they contribute to the development of finance and global economy. In China, the difficulty in financing for medium-sized and small enterprises has been a large problem for long. The diversity of private financing meets the needs of medium-sized and small enterprises at a certain extent. However, the “shadow banks”--such as private lending, folk financing and small loan company, make a high credit risk and are lack of supervisory. The fund flow of “shadow banks” is ambiguous, leading to potential crises in private financing, which is bad for Chinese economy. However, online financing provides a new choice. Recently, Chinese online financing platforms expand rapidly, such as the Ali Microfinance and Paipai Loan. These platforms can reduce the financing difficulty of medium-sized and small enterprises. Nevertheless, many online financing platforms in China bankrupted due to lacking of supervisory and management experience. Under such circumstances, domestic commercial banks can take the advantage of their large loan scale and low financing cost to develop online financing, which could not only help the medium-sized and small enterprises but also bring them more profit. The present situation of online financing and the feasibility of developing online financing business in domestic commercial banks were described. The potential procedure of online financing in domestic commercial banks were proposed. Besides, the risk of online financing was analyzed by the Game Theoretical Model.