Study On The Effect Of Internet Finance On Commercial Banks' Of Profits

The internet technology as the representative of modern information technology is changing the world rapidly and profoundly,from a person' daily life as the minimum to social economic development pattern as the maximum.As a great invention,the influence of the internet penetrates into every field,finance industry is no exception.Internet finance as an emerging field refers to relying on the payments,cloud computing,social networking and search engines and other internet tools to achieve a financing payment and information services.Upholding the spirit of internet(openness,equality,cooperation and sharing),enterprises enter internet finance sector from different angels.With a series of advantages as high effectiveness,convenience,low cost and focusing on customer experience,internet finance enterprises are achieving great development.Rapid development and obvious advantages of internet finance inevitably has a big influence on commercial banks,decreasing market share will stimulate commercial banks to change and reform.Based on this background information,this paper focuses on the impact of internet finance on commercial banks' profits.We began this paper with the concepts and theory related to internet finance,clarified the concept,business model and essence,at the same time,defined the commercial banks' profit model discussed in the paper.On this foundation,we carried out theoretical analysis of the possible impact of the internet finance's three business models on commercial banks' middle services,deposit and loan business.At last,this paper also analyze this impact though some examples.Though theoretical analysis,quantitative analysis and empirical analysis,based on the results,this paper puts forward some advice for the commercial banks to confront the challenges from internet finance.we believe internet finance's three business models influence commercial banks' profit level mainly services charges and interests and this influence will be more profound in the long run.