The Impact Of Internet Finance On Small And Medium-sized Commercial Banks And The Countermeasures

The Internet finance has been popular for 5 years since the beginning of the country in 2013.It relies on the thinking of the development,equality,cooperation,and sharing.At the same time,it have formed a certain impact to the small and medium-sized commercial banks.The paper studies the impact of Internet finance on small and medium-sized commercial banks.This paper points out the problems in the field of small and medium-sized commercial banks by means of literature research,data analysis and empirical analysis and compares them with Internet finance to puts forward corresponding suggestions.Firstly,paper mainly discusses the significance through a series of the innovation of Internet finance after the introduction of the “balance”,and puts forward how the small and medium-sized commercial banks can effectively deal with the challenge from the Internet financial enterprises.The paper reviews the methods and the deficiency of research on the subject,Combining with relevant research and practice at home and broad and by combining information asymmetry theory,transaction cost theory,circumvention regulation theory,"two-eight law" and "long-tail theory" with the development of domestic Internet financial enterprises,the relevant theories for its explosive growth is found.Second,the paper defines the concept of Internet finance,introducing its evolution and the main Internet financial models to show clearly what is Internet finance.At the same time,paper analyzes the money market funds,P2 P platform,crowds funding mode,the third-party payment model,profit model and service model,which provides support for the later comparative analysis.Finally,paper points out the differences between Internet finance and small and medium-sized commercial banks by using PEST and SWOT analysis tools,finding out the comparative advantages of small and medium-sized commercial banks.Based on the analysis of the influence of internetfinance on small and medium-sized commercial banks,this paper provides some suggestions for A bank to deal with the challenge of internet finance.