Study On Commercial Banks Efficiency Affected By Internet Financial Technologies Spillover

In the digital age, with the development of technologies such as, mobile payments, social networks, search engines, cloud computing and big data etc.,information technologies are integrating with financial technologies gradually and profoundly. With huge amounts of customer data and acquaintance with users' financial demands, internet industries are undergoing a sharp development where new financial models like mobile payment, the third party payment, electronic commerce loan, peer-to-peer lending, crowd funding and network finance, have come into being.The internet finance can create financial and resource allocation disintermediation by reducing transaction cost. It has broken into traditional bank payment and settlement field, and also gradually touched many core businesses, for instance, loans, finance and investment and consignment funds etc., which leads to less median income for commercial banks, savings structure change, capital cost increase and serious threat to the model mainly relying on interest margin.cross-border competition of internet finance breaks industry boundaries and competition patterns among commercial banks by using technologies, striking and challenging their median statuses. Will traditional commercial banks be overturned by internet ones, people are asking.The impact and challenge bring commercial banks a crisis consciousness. In a bid to cope with internet financial competition, they have to learn and use the internet financial technologies to improve production efficiency. Normally, with the feature of externality, internet technologies can be a competitive edge by internet financial industries and significant tool(to win) by traditional commercial banks. Internet finance intends to break the monopoly of the commercial banks and serve more micro,small and medium enterprises, whose needs traditional banks can't meet. Thus some experts think because internet finance is positioned in fields which traditional commercial institutions didn't develop a lot, it will be a supplement to original traditional bank businesses.While many financial representatives and bosses say external effect and technology spillover produced by the internet finance have brought commercial banks non-ignorable negative effects and caused danger to be reversed totraditional financial industries.It's a “black box” that research on how internet finance affects commercial banks efficiency in academia. Questions like “what the spillover mechanism and channels are”, “direction of technology spillover is positive or not”,“how about the effect” and “to different bank efficiencie under different ownership,the effect is the same”, and so on, are waiting to be answered.Based on reasons above, this paper analyses and expounds background, meaning,model that the internet finance comes into being, and its research status at home and abroad. Then, analyz relevant theories of technology spillovers, the author think that internet finance influences commercial banks' efficiency through illustration,imitation, competition, the front and backward linkage and talent flow, and puts forward an assumption about existence and heterogeneity of internet technology spillovers. In further empirical study, the author takes labor productivity in 2003 to2014 of 12 major commercial banks as the dependent variable, factor analysis and financial index created by baidu news database as independent variable.According to variables above, the author studies internet finance by using enterprise panel data in banks, analyzes its effects on labor productivity of commercial banks, and investigates degree and direction of the influence. Finally, this paper proposes different suggestions in view of internet financial enterprises, commercial banks and government.It comes to three main conclusions in this paper. Firstly, internet banking have a significant negative impact on the overall efficiency of commercial banks, its impact value is-0.6532; Secondly, the internet has no financial significantly negative impact on the efficiency of state-owned banks,the value of-0.0864;Thirdly, the internet banking has a significant negative impact on the joint-stock commercial banks, the value of-0.9278, the negative effect is greater than state-owned banks.In this paper, three methods like logical reasoning, text mining and measurement analysis are used, researching the effects from the perspective of empirical research.There exist three innovations in the methods. At first, it introduces text mining into econometrics, quantizes original world library with the help of baidu big data, and creates internet finance index by using factor analysis. Secondly, it analyzes directions and degrees how internet finance spillovers affect commercial bank efficiency, by establishing models influencing commercial bank productivity. Thirdly,it studies different effects internet finance takes on state-owned banks and joint-stock ones.