An Empirical Study Of The Impact Of Internet Finance On The Profitability Of Five Major State-owned Commercial Banks

In the context of Internet technology,many traditional financial institutions and Internet companies have begun to integrate the Internet and traditional finance,using the advantages of wide Internet coverage,low cost and fast information dissemination,combined with the traditional financial business model,breaking the shackles of traditional mechanisms.It has spawned a new financial model-Internet finance.The emergence of Internet finance has changed people's financial behaviors such as consumption and financial management.For example,Internet finance models such as third-party payment,online marketing funds and P2 P online loans,these new financial models have emerged and quickly occupied a certain share in the traditional financial market.The profitability of commercial banks is affected by the Internet economy industry.The main business of traditional finance has been robbed of market share by the new trading model of the Internet economy.Although the banking industry is now beginning to integrate its traditional business with Internet technology,The current customer base for its Internet platform is still limited.According to the "Overall Situation of the Operation of the Payment System in 2018" issued by the People's Bank of China,the third-party payment business of China's Internet financial institutions was 5,306.10 in 2018,and the total transaction amount was as high as 209.0 trillion yuan,due to the third-party payment in China.All are monopolized by commercial banks.The emergence of this situation reflects that the market share of commercial banks in China is being occupied by the Internet financial transaction model.The article uses theoretical and empirical mutual argumentation to analyze the impact mechanism of the profitability of the five state-owned commercial banks by the Internet economy.This paper first summarizes the theoretical research results of domestic and international Internet finance and bank profitability through the analysis and research of relevant commercial banks and Internet finance industry literature.Then,by consulting the literature,the evaluation indicators of Internet finance and the profitability of the five major state-owned commercial banks were determined.The paper is based on the financial annual report data of the five major state-owned commercial banks in 2011-2017,and puts forward the hypothesis through theoretical analysis,and then analyzes the panel data to construct the regression equation.In the quantitative analysis,the relevant data of Internet Finance 2011-2017 is selected,and the three Internet financial models of third-party payment,P2 P network loan and online marketing fund are taken as the core explanatory variables.The control variables are set to the non-performing loan ratio,non-interest income ratio and asset size of the five state-owned commercial banks.The empirical study shows that the profitability of the five state-owned commercial banks is indeed negatively related to the three major transaction models of Internet finance.This shows that the decline in the profitability of the five major commercial banks in the past few years has been partly due to the Internet finance industry.Based on the conjectures and hypotheses proposed in the theoretical research of this paper,and the reasons for the findings of empirical research.The article puts forward relevant countermeasures and suggestions for the negative effects of Internet finance on the five state-owned commercial banks.For example,improving the degree of integration between banks and the Internet,optimizing user experience,diversifying the business philosophy of commercial banks,improving the level of bank Internetization,actively transforming the business model of traditional commercial banks,strengthening cooperation between banks and Internet companies,and rationally strengthening the construction of financial science and technology talents.With training and other programs.