Research On The Profit Model Of The Commercial Banks In The Internet Finance Background

With the accelerated development of Internet technology and e-commerce, internet finance springs up concomitantly. China's Internet finance has been developing rapidly since2013. which has caused definite impact on the development of China's banking industry. In the year of 2014 the sum of business transactions of the third-party Internet payment reached 8 trillion yuan, increasing by 50.3% over 2013.Till the end of October 2015, the P2P platform accumulative volume exceeded one trillion yuan, reaching 1.09 trillion yuan; besides, the reading volume of the first 10 months quadrupled the whole volume of 2014. At the end of 2015,283 crowdfunding platform with normal operation r raised 11.424 billion yuan, with an increase of 429.38% compared with 2014. In January 2014, Industrial and Commercial Bank of China launched an e-commerce platform named "rong e gou". After nine months of 2015, the trading amount has exceeded 500 billion yuan. At the end of September 2015, ICBC established a network financing center, which raised more than 500 billion yuan by the end of this year and then became one of the largest network financing banks. By the end of 2014, the overall size of yu'e bao has reached 578.936 billion yuan; the yield has reached 4.1%; the total revenue has come to 24 billion yuan. Compared with 2013, the increment of China's commercial bank deposits has reduced 3.08 trillion yuan in 2014. In November 2015, internet finance was drawn into the thirteenth Five-Year Plan of our country, which means that the development of internet finance has occupied a more important status than ever and the internet finance's development of the overall innovation space and scale will keep expanding in the future. Therefore, China's commercial banks should actively adjust their profit model against the background of internet financial.With the rapid development of Internet finance and financial disintermediation, as well as the advance of market internet, China's commercial bank is faced with following impact:first, intermediary payment function has been marginalized; second, part of financial intermediation and information intermediary function are going to be replaced; third, cost of deposits increase and the total decrease; fourth, deposits and loans interest rate differential narrow and the interest income growth declines gradually. Thus, China's commercial banks should analyze their own advantages and challenges they are facing, changing and innovating their profit model as soon as possible.In the early years of the internet finance development, Ping An Bank determined the strategy of "growing the Internet era financial", which has a clear position and develop model, and also borne fruit. The total income of "Cheng e Wang", the online financial services platform of Ping An Bank, which was founded less than six months, and the internet company that was developing estate, energy and transport business has reached 15.1 billion yuan in 2014, accounting for 20.51% of the annual revenue of Ping An Bank. Moreover, relying on the innovation of online supply chain finance model of "Cheng e Wang", Ping An Bank became the only "2015 Internet and industrial integration innovation pilot enterprises" in August. Therefore, taking Ping An Bank for example, this paper will analysis Ping An's profit status as well as its profit model's innovation and change on the background of internet finance, and summarize its experience and deficiency, and then make suggestions, providing a reference for other Chinese commercial banks.