Study On The Effect Of Internet Finance On The Profitability Of China's Commercial Banks

In recent years,while actively developing a socialist market economy,China has also made considerable progress in science and technology.Thanks to the continuous improvement of big data,cloud computing,and network technologies,e-commerce has also made tremendous breakthroughs.China's Internet finance companies have emerged in an endless stream.Internet technology has been successfully applied to the financial sector,and an Internet financial system has gradually emerged.With the widespread use of smart phones,it has created a good environment for the development of Internet finance and has attracted the attention of various industries.Since 2010,Alipay,a typical third-party payment system,Internet e-finance products with a balance of treasure,as well as crowd-funding platforms and P2 P online loan platforms have mushroomed.The advancement of Internet technology has not only caused great changes in the form of financial services,but also has made tremendous progress in service costs and business transaction efficiency.Various Internet financial models have significant features of high transaction efficiency and low cost.All of them have had a huge impact on the traditional financial industry represented by commercial banks.As a result,the market share of traditional financial industries,including commercial banks,has been declining year by year.This has prompted commercial banks to start operating models,product updates and payments.Ways and other aspects seek change.Therefore,taking the Internet finance and commercial banks as research objects,the impact of the development of Internet finance on the profitability of commercial banks has been studied.This has implications for the development of Internet finance towards a more mature direction and how commercial banks will change in the context of the increasingly perfect Internet finance.Important theoretical significance and practical significance.Under the above background,the paper studied the impact of Internet finance development on the profitability of commercial banks.First of all,the dissertation summarizes and summarizes the research of some scholars in the past,and then briefly expounds the actual conditions of the two countries.And based on a certain theoretical basis,combing the relationship between the two,analyze the interaction between the two.Then we use the panel data of 15 listed commercial banks for seven consecutive years for quantitative analysis and draw conclusions.Finally,it provides some suggestions for how the two can play their respective advantages in the competition,hoping to provide some references for the development and transformation of commercial banks in the context of rapid development of the times.