An Empirical Study On The Effect Of Internet Finance On The Performance Of Commercial Banks

The introduction of the “Internet+” slogan and the emergence of Internet finance have brought new prospects to the financial industry.Big data,cloud computing and other technologies have greatly accelerated the operability and convenience of financial activities.The financial market is no longer a single bank.In a big situation,Internet finance with strong technical attributes has affected more and more customers in new forms.In a few short years,the rapid development of Internet finance has put commercial banks under tremendous pressure.Internet finance has changed the traditional financial model,is more open and transparent,and has advantages over the traditional banking industry in information symmetry,transmission,processing,and resource optimization.Its emergence and development will undoubtedly bring about huge challenges to the survival of the traditional banking industry.This article is based on the current status of the banking industry,from the perspective of the development of Internet finance,to explore its impact on bank performance,to provide a more diversified perspective for banks to better development under the current Internet financial challenges.This article first defines the concept of Internet finance,collates relevant literature on the impact of Internet finance at home and abroad,and Internet finance on commercial banks,and then conducts a detailed analysis and conjecture on the specific influence mechanism of Internet finance on the performance of commercial banks.This article draws lessons from the practical experiences of domestic scholars,uses Internet search engines,and constructs relevant indexes for measuring the development level of Internet finance based on the “text mining method”,and describes the development level of Internet finance and Internet finance indexes of various business models.In the empirical study,based on the data of 157 commercial banks in China from 2008 to 2016,this paper uses the fixed effect model to study the impact of Internet finance on the performance of commercial banks,and further explores Internet payments,Internet investment and financing,and Internet money funds.As well as the impact of internet big data on the specific business impact of commercial banks.The study finds that the development of internet finance has a negative impact on the performance of commercial banks.Further research on the impact of various internet financial models on commercial banks can be found: Internet payments will bring pressure on commercial banks' intermediate payment and settlement businesses.The substitution effect has caused the commercial bank's online payment business to be seriously affected,thus reducing the commission income of the commercial bank,and thus has a negative impact on the bank's performance.The Internet financing lending is different from the customer groups targeted by the commercial bank,which is mainly aimed at The small and micro enterprises that cannot obtain financing loans from commercial banks do not have a significant impact on the performance of commercial banks.Internet money funds mainly affect the business of two aspects of the banks.The first is the profitability and liquidity of internet money funds.The characteristics have caused commercial banks to lose their deposits,thus increasing the cost of obtaining deposits from banks.Second,Internet fund money has captured the market of commercial banks' wealth management services.As a result,the development of internet money funds has resulted in the performance of commercial banks from both cost and revenue.Negative Strike;and large Internet data can be more accurate calculation and recognition of credit risk of banks through Internet technology and big data analysis,you can reduce credit risk and improve the operating performance of commercial banks.