Research On The Impact Of Income Diversification On The Operating Performance Of Commercial Banks From The Perspective Of Internet Finance

In recent years,with the acceleration of interest rate liberalization and financial liberalization,Internet plus finance has been highly consistent.Internet finance has constantly created new opportunities for development in various fields.Internet companies have entered the financial market,which has completely changed the ways and concepts of daily consumption,wealth management,payment and so on,which has intensified the competition among banks,and accelerated the Internet business.With the diversion of customers between banks,the pressure of commercial banks to absorb and collect interest doubles.The external "competitive effect" of Internet enterprises impacts the "deposit,loan and remittance" business of commercial banks,reduces the interest income and fee income of banks,and reduces the profit space of banks.Commercial banks are facing the dilemma of "financial disintermediation" and "marginalization".As interest income is an important source of profits for commercial banks in China,and the development of non-interest income is relatively low,and the level of income diversification has limited impact on the overall performance of commercial banks,commercial banks are eager to transform and innovate,expand the channels of interest income and non-interest income,and enhance profits and management level.by increasing the cost of investment in financial science and technology and seeking mutual cooperation.Firstly,the theories of Internet finance,income diversification and operating performance are analyzed and summarized,and the impact of Internet Finance Development on assets,liabilities and intermediary business of commercial banks,as well as the competition and impact effects on interest income,non-interest income and net profit of banks are analyzed and summarized.On this basis,we select the unbalanced panel data of 100 commercial banks in China from 2010 to 2017,construct the "Internet Financial Development Index" and "Income Diversity Index",and use the dynamic GMM estimation method to verify the impact of Internet Financial Development Index,Income Diversity Index and their multiplier on the performance of commercial banks.The empirical results show that:(1)the rapid development of Internet finance has a significant negative impact on the profitability of commercial banks,indicating that the external "competitive effect" brought by the development of Internet enterprises in the financial field to commercial banks exceeds the "technology spillover effect" brought by commercial banks using financial technology reform andinnovation;income diversification has a negative impact on the profitability of commercial banks.Directional effect,but not significant.(2)The impact of Internet financial development on the performance level of small and medium-sized banks is more serious than that of large banks;income diversification has a positive impact on the performance level of large banks,but not significant;income diversification has a negative impact on the performance level of small and medium-sized banks,and is not significant.(3)The multiplier of Internet Financial Development Index and Income Diversity Index has a positive impact on the performance of all kinds of banks.This shows that,with the enhancement of financial technology innovation penetration,the development of Internet finance will enhance the level of diversification of bank income,and ultimately will promote the improvement of bank performance.Finally,on the basis of theoretical analysis and empirical research,this paper puts forward corresponding countermeasures and suggestions on how to improve the performance of commercial banks through income diversification from the perspective of Internet finance.