An Analysis Of The Internet Finance Effects On The Profit Of City Commercial Bank

The new Internet technology,represented by cloud computing,large data,social networking and e-commerce,has penetrated into the financial field in the form of Internet finance.After the rapid development of recent years,internet finance has become a hot topic which can't be ignored in China's financial industry.City commercial banks are different from state-owned commercial banks in terms of scale,system and risk control capacity,making it have to face the more serious situation,at the same time,city commercial banks and Internet finance are committed to the development of small and micro enterprises and individual customer.Under the impact of Internet finance,commercial banks' monopoly is threatened,which its traditional main source of the profit model is difficult to continue,the traditional business needs to transition,innovative financial business is in the ascendant,so it is very important and urgent to change the old profit model.Based on the above background,the paper explores the Influence mechanism?influence level and the trend of Internet finance on the profitability of city commercial bank,and how should the city commercial banks take effective measures to the impact of Internet finance.This paper summarizes the mainstream ideas of the definition of Internet finance,the development of Internet finance,the profitability of commercial banks and the influence of Internet finance on the profitability of commercial banks by literature review and theoretical basis.From the development background,the present situation and the characteristics of the city commercial banks,compare the advantages and disadvantages of the city commercial bank and the Internet finance to study the development environment of the city commercial bank under the background of Internet finance.Then qualitatively analyze influence mechanism and influence status on the assets,liabilities and profit of the city commercial bank,and select the representative city commercial banks' annual data for empirical analysis.The result shows that the development of Internet finance has brought obvious impact to the city commercial bank,making its profit reduce.The analysis shows that the Internet financial institutions have affected the interest income,financial income and fee income of the city commercial banks.However,due to the city commercial bank compared to the Internet financial has some advantages such as asset quality and credit system,and internet finance itself also have some imperfections,so in the early stages of the development of the impact to the city commercial bank is limited,at least not fatal,but from the current development speed of Internet finance,the impact of Internet finance can't be underestimated.If the city commercial bank is not active to take effective measures,the consequences are difficult to predict.Therefore,from the characteristics of the city commercial banks,the paper put forward how to effectively deal with the impact of the Internet financial.In the debt level,care about the innovation of financial products,to play the city commercial banks "small and micro financial" features;in the asset level,need to innovate financial tools and products,pay attention to long tail effect;in the profit level,change the way to pay to get more intermediary business income.In addition,the city commercial firms should pay special attention to the platform construction,the combination of online and offline,improve the ability to dig deeper data,enhance the level of credit risk prevention and control,pay attention to the cultivation and introduction of compound talents,and accumulate strength for the follow-up development of city commercial firms.Based on this,the city commercial bank can effectively cope with the impact of Internet finance,through complement each other and resource sharing,to achieve their own transformation and upgrading,to protect their own profitability and long-term development,and constantly to improve the domestic financial market environment,and to promote the comprehensive development of China's financial industry.