A Comparative Study Of American Direct Banks And Traditional Banks Based On Matching Theory

In recent years,China's Internet finance industry has experienced a spurt of development,and Internet banks with Internet companies as their background have been established.Compared with the development of Internet banking,the theoretical research on Internet banking is relatively scarce.As the birthplace of Internet finance in the United States,the development of direct banks in the United States has a history of more than ten years.The research on direct banks in the United States is of great significance to the development and regulatory policies of Internet banking in China.This paper first introduces the domestic and international definitions of Internet banking related concepts,and briefly summarizes the development of Internet banking at home and abroad.Then,by studying the annual data of 14 direct banks and 201 traditional banks in the United States from 2010 to 2016,this paper compares the profit performance,risk and profit structure of direct banks and traditional banks.In order to eliminate the endogenous problems that may exist,this paper uses the matching theory--this method can effectively eliminate the selectivity bias by matching the characteristic variables.In the model,the fixed effect model is chosen in this paper,which can effectively eliminate the bias caused by the individual effect of the bank.Using pre-matching data for regression analysis,direct selling banks have better earnings performance and a more diversified profit structure,but there is no significant difference between the two risks.Using the matched data for regression analysis,direct banks still have better earnings performance and a larger coefficient,but there is no significant difference between the two risks and profit structure.Therefore,this paper believes that after more than a decade of development,US direct selling banks have no significant difference in risk and profit structure from traditional banks,and have a better performance in terms of profitability.Finally,based on the above empirical results,this paper discusses the development of US direct banking development experience on the development of Internet banking in China,and puts forward corresponding policy recommendations.