The Study On The Internet Finance And Its Impact On China's Commercial Banks

Since the financial crisis,advanced economy and emerging market economy grew differently and the domestic economy entered the adjustment and transition period as well.With the domestic economy moving into a downward cycle,the rapid development of commercial bank no longer sustained,the growth rate of main indicators has been declining and profit growth rate bottomed out in 2015.Along with the difficult transition of commercial banks are high bad debts,heavy loss of deposits and negative press from internal mismanagement.What's more,traditional commercial banks are impacted profoundly by innovation platform-the rise of the internet banking.Internet banking stands out to the fore in the tide of national and public innovation which is encouraged by nation.In a very short period of time,it is widely accepted by public.Five years since 2010,the Internet banking has explored internet money management,P2 P loans,crowd funding,Internet banking,third-party payment,large financial data,financial information and a series of financial products and services which subverted the traditional public awareness.Of which,some financing products represented by Yuebao,some internet banks represented by Webank,some third party payment platforms represented by “Alipay”,Internet financial information services group represented by Ants Financial Services and short-term internet loans represented by Jingdong IOUs are changing public's daily life.The rapid development of Internet banking makes the transition of commercial bank become more important and urgent,if traditional commercial banks can not keep up with the tide of the Internet banking,reforming the business model,philosophy,profit model,product portfolio and services all-round,the threaten to commercial banks would be fatal once the Internet financial ecosystem is formed.Commercial banks must be well prepared against the tide of Internet banking although it has the absolute dominance in the financial system.Making use of the Internet banking experience and advantages combined with traditional business is the preferred option currently.There are some abuse in the early development of Internet banking such as supervision uncertainty,risk uncertainty,aim uncertainty,but with the national level of internet financial support and written into 2015 annual report on the work of the central government shows the Internet banking is bound to change public financial understanding.This article starts with the rise of Internet financial and development,gives a detailed analysis of current Internet financial development model and ecosystem construction,combined with the business models,product design and service of commercial banks,note out the disadvantages against the Internet banking,analyze the specific factors and degree of impact and points out coping strategy for commercial banks towards Internet banking,including the commercial banks should have Internet thinking,strengthen personnel reserves and core competitiveness,complement with Internet banking companies and the implementation of double differences in management mode,etc.The rise and development of Internet banking is a new stage of financial development,while it can not replace the traditional commercial banks.Commercial banks should avoid disadvantages,change initiatively,strengthen itself and industrial layout in the tide of the Internet,pad short board so that to provide a stable and safe financial security for the upgrade of the market economy in transition.