The Impact Of Internet Finance On The Traditional Banking Business Of Commercial Banks

The increasingly rapid growth of Internet finance has made it an unstoppable trend today.Slipping into the Internet era,internet Technology is flushing into all aspects with an overwhelming momentum and has been widely adopted in all walks of life.There is no exception when it comes to the finance sector.Internet finance enterprises represented by Alibaba and Tencent,have enjoyed dramatically rapid development since their emergence in the 1990 s and have now become a strong power in the field of finance,bringing in brand new customer experience and convenience while pressing grave challenges to commercial banks.On the one hand,enterprises and services under Internet finance business mode have objectively promoted the marketization of traditional finance enterprises,and even forced interest rate liberalization.On the other hand,it helps SMEs to tackle difficulty in getting loans in China's financial system given that Internet finance primarily targets at low-net-worth individuals and SMEs.This paper is composed of five parts.Part one gave an introduction,which defined the research object and value of the paper through the explanation of the research background and significance and the main research contents and methods.Part two conducted a theoretical literature review,which sorted out the contents of literature research at home and abroad and briefly described the relevant theories of the Internet,laying theoretical grounds for the following argumentation.Part three introduced the status,strengths and revelations of Internet finance and made analysis of the differences between current Internet finance and commercial banks in business and form.Part four,the main body of the paper,investigated the influence of Internet finance on traditional banking business and put forward suggestions in this regard.Specifically,it analyzed the influence of Internet finance and JS Bank with cases and real business data.And four pertinent suggestions were proposed for the problems existing in the business development of China Construction Bank.Part five made a summary of the paper and present an outlook for the topic.This paper mainly adopted the literature research method,consulting a host of related literatures both at home and abroad about Internet finance and drawing on their essence and discarding their dross through an sort-out after deep reading.With the help of a large number of documents,this paper is able to clarify the relationship between Internet finance and the traditional business of commercial banks,understand the specific mode of Internet finance and then sum up their strengths and weaknesses.Moreover,the method of case study was employed.In order to beef up the credibility of the research,selected as JS Bank a commercial bank boasting vast influence in our country,so the research results had high credibility.At the same time,the influence of Internet finance on the traditional business of JS Bank was probed into,with deep analysis made on the status quo and defects facing the three traditional businesses–Deposit business,Loan business and Intermediate business.And the method of SWOT was employed,the paper analyzed the strength,weakness,opportunity,threat between the JS Bank and Internet finance.Finally,this paper is meant to present thoughts and reference which could be applied in the transformation of other commercial banks development.