Study On The Influence Of Internet Finance On The Profitability Of Commercial Banks

The popularization of Internet Finance promotes the profound change of financial market environment,customer demand and service mode,and affects the development of commercial banks.Under the influence of the rapid development of external Internet Financial business and the internet of the traditional business of commercial banks,commercial banks need to explore a new profit model and improve their profitability.It is of great significance to construct a healthy competitive relationship between Internet Finance and traditional commercial banks and to promote the healthy development of financial industry.In theory,Internet Finance indirectly increases the operating cost of commercial banks by squeezing the three main business shares of commercial banks to produce substitution effects.Internet Finance has a risk contagion effect on commercial banks because of the characteristics of Internet interconnection,which causes capital losses to commercial banks and their customers.Commercial banks increase cost input and capital occupation in order to guard against new risks on the Internet.Thus Internet Finance has a negative impact on the profitability of commercial banks.Internet Finance has a certain innovative effect on the profitability of commercial banks,which can force commercial banks to speed up business transformation and change through Internet thinking and change the profit model.In order to explore current situation of commercial banks' profitability,the index system of profitability is constructed by factor analysis,and the profitability of commercial banks with different asset sizes is measured.The results show that:on the whole,the profit growth of commercial banks after 2015 is weak,so it is urgent to find a new profit growth point;The profitability of large state-owned commercial banks is stronger than that of joint-stock commercial banks and city commercial banks,and it has obvious competitive advantages in risk management and efficiency.The joint-stock banks with the leading profitability generally have distinct operating characteristics and strong innovative ability,and their non-profit Interest income grow faster,non-interest income accounted for a relatively high proportion of business income,driving the steady growth of profitability.In the empirical study,the panel data model is constructed from the two aspects of external Internet Finance and internal Internet Finance of commercial banks,and the different effects of internal and external Internet Finance on the profitability of commercial banks are compared.The empirical results show that:the external Internet Finance has a negative inhibitory effect on the profitability of commercial banks,and this negative effect is obviously different among commercial banks with different asset sizes,in the system mechanism,customer size,The construction of business composition is the decisive factor to deal with the financial shock of the external Internet.In the face of the impact of Internet finance,commercial banks have a foundation and the ability to expand the Internet with its own characteristics.Financial business,with a new business model to enhance the profitability of commercial banks,but due to the size of the assets of commercial banks and the development strategy of Internet Finance,opened up their differences in customer maintenance and risk tolerance.Causes the commercial bank internal Internet Finance to the profit-making ability enhancement degree to have the difference.According to the action mechanism and influence effect of Internet Finance,according to the management characteristics of commercial banks with different asset sizes,This paper puts forward some suggestions on how to improve the profitability of commercial banks under the background of Internet Finance:first,to establish a safeguard mechanism to adapt to the development of Internet Financial business;The second is to widen the new space of digital management of commercial banks,the third is to pay attention to the promotion of customer value in the transformation of retail business,and the fourth is to reduce the risk cost of commercial banks through financial technology.