A Study Of The Internet Financial Strategies Of China Merchants Bank

The convenient,economical and time-saving Internet has brought a qualitative leap to the development of financial sector and its popularity and application have accelerated the development of Internet Finance.Internet enterprises apply their technological advantages to financial business in financial sector,which is an emerging financial model featuring in low cost,high efficiency,wide coverage and transparent information,thus many Internet enterprises have set foot in third-party payment,network financing and other fields.Compared with conventional business model of commercial banks and other financial institutions,the Internet financial model boasts plenty of unique advantages.The rapid growth of Internet Finance has weakened the traditional financial intermediary functions of commercial banks and greatly affected their intermediary business income.In many ways,Internet Finance has influenced and is influencing commercial banks' business activities and competitive behaviors in financial market.To avoid marginalization,only by transforming business models can China's commercial banks keep their invincible position in the fierce competition in financial market.Traditional commercial banks have started their Internet Finance plans one after another.In addition to introducing E-payment & settlement and E-financing business,these banks also introduce many innovative products to the public,such as E-commerce platform,WeChat banks,direct banks[1],etc.China Merchants Bank(CMB)was established in 1987 in Shenzhen Special Economic Zone.Over the years,CMB,having all along been adhering to the innovative philosophy of “Developing CMB through science and technology” and “Making changes for customers”,has become a leader in the Internet Finance sector.Thus,the author chooses CMB as the case to explore its new development strategy of Internet financial business to provide reference for other small and medium-sized commercial banks in their practice of developing Internet Finance.This thesis firstly introduces relevant achievements of Internet Finance development in both domestic and foreign commercial banks;then,it introduces the general development of CMB,the status quo of Internet financial business,and the existing problems in this regard,based on which,this thesis carries out SWOT analysis on the Internet Finance development of CMB,and then draws a conclusion for better developing CMB.Finally,this thesis proposes the strategies for the Internet Finance development of CMB: building the direct bank system which combines banking services,E-commerce and social platform;while providing in-depth personalized services to different clients,cooperating with Internet enterprises without hesitation so as to provide practical instructions to other banks in their practice of developing Internet Finance.