Research On The Impact Of Internet Financial Business On The Business Performance Of Commercial Banks

The rapid development of Internet finance has changed the situation of China's financial industry and shaken the dominant position of China's traditional commercial banks.With the rapid development of Internet technology,China's Internet finance is gradually becoming mature,the market size is getting bigger and bigger,and the business types are getting richer and richer.With the advantages of convenience and low cost brought by the Internet,Internet finance has continuously seized the market share of commercial Banks and diverted the customers of commercial Banks.In order to encourage financial enterprises to increase innovation,the government has publicly expressed its support for Internet finance,issued financial licenses to Internet financial enterprises,and introduced relevant regulatory regulations to make the operation of China's Internet financial enterprises more standardized and legitimate.With the improvement of online and offline use scenarios of Internet finance and the gradual formation of users' use habits,the market scale of Internet finance will be further expanded and the impact on China's banking industry will be further increased.If commercial Banks want to continue to maintain the dominant position in the financial industry,they must accelerate the process of transformation and upgrading,improve the business model,increase the innovation of products and businesses,and improve the operating efficiency.The rapid development of Internet finance is not only an inevitable challenge for traditional banking industry,but also an opportunity for transformation and upgrading.Before empirical analysis,this paper firstly discusses the research background and significance,and systematically sorts out the existing research achievements of scholars.Secondly,from the perspective of technology level effect,information exchange effect,disintermediation effect,inclusive finance effect and long tail effect,this paper discusses the influence mechanism of Internet finance on the operation performance of commercial Banks.And from the four aspects of commercial Banks' asset business,liability business,intermediate business and business model,this paper studies the ways that Internet finance affects the business performance of commercial Banks.In the part of current situation analysis,the development status of Internet finance is firstly discussed with the third party payment as the focus.Secondly,factor analysis is adopted to analyze the operation status of traditional banking industry in China under the background of rapid development of Internet finance from four perspectives of profitability,safety,liquidity and growth.In the part of empirical analysis,this paper selects the panel model of random effects to analyze the impact of Internet finance from the four perspectives of commercial Banks' profitability,safety,liquidity and growth.In terms of data selection,this paper selects the financial data of 16 listed commercial Banks from three aspects: state-owned commercial Banks,national joint-stock commercial Banks and city commercial Banks from 2013 to 2018.In order to increase the length of the data,quarterly data was selected for this paper.It can be seen from the results of regression analysis that Internet finance has a weak positive impact on the profitability of commercial Banks,a significant positive impact on the security of commercial Banks,an insignificant positive impact on the liquidity of commercial Banks,and a weak negative impact on the growth of commercial Banks.The results of theoretical analysis and empirical analysis show that the rapid development of Internet finance has a certain impact on commercial Banks in a short term.However,in the long run,it will help commercial Banks to achieve strategic transformation,improve their business model,improve their business capacity,accelerate product innovation,enhance user experience and enhance their competitiveness.In order to make commercial Banks better reduce the negative impact of Internet finance,this paper combines theory with practice and gives three feasible suggestions.First,commercial Banks should increase their cooperation with Internet financial enterprises to learn Internet financial operation mode.Second,commercial Banks should strengthen the research and development of advanced technologies to narrow the technological gap with Internet financial enterprises.Third,commercial Banks should increase the absorption of high-tech talents to create a scientific talent structure.