Research On The Profit Model Of Commercial Banks In The Context Of Interest Finance

With the rapid development of Internet finance,the Internet finance market is endless,with the emergence of third-party payment and settlement services,network lending and online asset management services,and the Internet financial industry has divided the commercial bank market with various innovative models.,erode the profits of existing customers and commercial banks.Under the new situation,the profitability of commercial banks has been affected.Traditional interest-rate income has gradually narrowed,service models have been affected,and the income structure has undergone tremendous changes.Together with the continuous over-enhancement of banking supervision since 2017,commercial banks will To survive and develop in the Internet finance competition,it is urgent to optimize and adjust the profit model,re-evaluate its own development,optimize the profit structure,and build a new profit model.This article begins with the concept of Internet finance and profit model,and introduces the meaning of Internet finance,the current situation and problems of China's Internet finance,and the commercial profit model of Internet finance development.Second,the basic theory and core five elements of the profit model: profit target(customer range),profit source(source of income),profit point(customer value),profit leverage(business activity),profit barrier(profitability and growth ability)Conduct detailed analysis.Based on this,taking Zhongyuan Bank as a commercial bank as an example to study its development under the background of Internet finance,first briefly review its development history and external forms currently facing development,and then through 2016,2017 and China Merchants Bank.The data comparison of the People's Bank of China and the Bank of China People's Bank of China and the empirical analysis show that Zhongyuan Bank's interest margin income has gradually narrowed under the background of internet finance,its cost management and control have been strengthened,and intermediate business income such as fees and commissions and net income have shown an upward trend.The profit model has undergone a certain transformation.The contribution of the intermediary business income has gradually increased relative to the entire bank's profits,but the net interest income is still relatively small.Therefore,it is concluded that commercial banks,including Zhongyuan Bank,should seize opportunities,actively innovate,change profit models,and improve their core competitiveness.In the analysis of the profit model of Zhongyuan Bank,the first part is the specific analysis of the customer base,revenue source,business system,business activities and profitability of the core five elements of Zhongyuan Bank's profit model.Then,based on the data of various business indicators in 2017,the income and profitability of Zhongyuan Bank were analyzed from the assets and liabilities.After the listing of Zhongyuan Bank,the profit model was transformed and optimized,and innovative strategies for responding to Internet finance,such as perpetual loans,the launch of Zhongyuan Second Loan,the establishment of smart community banks and CRM customer management systems,and the implementation of full industrial chain cooperation were formulated.In 2017,Zhongyuan Bank's retail banking business,corporate banking business and financial market business have been greatly improved,and the future development is still good.However,at the same time as the achievements,the profit model of Zhongyuan Bank still has problems.If the income structure is unreasonable,the quality of capital still needs to be improved.Finally,on the basis of the full-text analysis,the evaluation of the profit model of Zhongyuan Bank and the recommendations for subsequent optimization are as follows: First,reasonable positioning and seeking a breakthrough.The second is to actively expand the intermediary business.The third is to improve the risk control capability and establish a long-term mechanism.The fourth is to explore and cultivate talents and attach importance to team building.The fifth is to innovate financial products and give play to the “small and micro-financial characteristics” of Zhongyuan Bank.Sixth,focus on platform construction,combining online and offline.These also have some reference and reference for the further transformation of the profit model of other commercial banks in China.