The Impact Of Internet Finance On Commercial Banks Profitability

In recent years,Internet finance relies on big data to realize rapid development,and commercial banks have been influenced by Internet finance in an unprecedented way.The development of Internet finance in China can be traced back to around 2005,when Internet lending began to sprout in China and the third-party payment institutions grew up gradually,the combination of Internet and finance begins to go deep into the field of financial business from the technical field.At the same time,China's economic transition,the new normal of China's banking industry presents a new development trend,one of the important points is the transformation of social financing trends.In this regard,the banking industry must pay attention to the impact of Internet finance,increase innovation,explore how to use information technology to strengthen business innovation,how to strengthen non-credit and off-balance sheet business innovation,how to strengthen debt business innovation,and how to enhance credit business innovation.With the correct understanding,the positive strategic deployment should deal with the Internet finance to the Commercial Bank business influence.First of all,through summing up the relevant literature at home and abroad,draw experience enlightenment.Based on the general equilibrium theory of Internet finance,the long tail theory and financial disintermediation theory,respectively.Secondly,it analyzes the profit model and development status quo of China's commercial internet finance and traditional banking,and the principle behind the status quo.By studying the specific mechanism of the impact of Internet finance on commercial banks,this paper analyzes the impact of Internet finance on commercial banks and the specific ways of business integration.This paper makes a comparative analysis of Internet Finance and commercial banking in China by using SWOT method.Thirdly,from the empirical level,the development of Internet finance can promote the profitability of commercial banks without considering other conditions;however,at the current stage,the development of Internet finance has a significant negative impact on the profitability of commercial banks.It is found that the development of Internet finance has little impact on large state-owned banks and city commercial banks.Banks with high non-performing rates are more affected by the Internet financial shock than banks with low non-performing loan rates.Finally,this paper summarizes the main conclusions and research results of the development of China's commercial banks to make recommendations.Looking forward to the long-term co-existence of Internet finance and commercial banks,traditional commercial banks should absorb Internet finance technology for their own development,learn from each other,will better serve economic life.