Research On The Influence Of Internet Finance On Commercial Banks' Innovation Ability

The rapid development of Internet finance has brought new challenges to the innovative capabilities and future development of commercial banks.On the one hand,it strongly squeezed the living space of commercial banks.The obvious trend has led to the severe challenge of Internet finance for the traditional business model of commercial banks.In order to gain more market share,commercial banks are also actively seeking change.Their current business model is not enough to continue to occupy a favorable position in the market,and they are beginning to explore new development models and diversified business methods.Drawing on the experience of western developed countries in developing innovation capabilities,China's commercial banks have taken the initiative to innovate from products and business models and make strategic transformations.Under this background,studying the relationship between Internet finance and commercial banks' innovation capabilities has important theoretical and practical significance for commercial banks to carry out financial innovation and smart transformation in the future.The influence of Internet finance on the innovation ability of commercial banks has always been a hot issue for scholars.On the basis of previous research,this paper has conducted a more specific study on the relationship between Internet finance and commercial banks 'innovation capabilities in combination with the current development situation of Internet finance and commercial banks' innovation data.First,it explains the connotation of internet finance and commercial banks 'innovation ability,outlines the connotation,development characteristics and main models of internet finance,and discusses the concepts and measurement methods of commercial banks' innovation ability and related innovation theories.Have a clear understanding of the innovation abilities of Internet finance and commercial banks,and on this basis,introduce the relevant theories of innovation abilities of Internet finance and commercial banks.Afterwards,the development status and existing problems of Internet finance and commercial banks' innovation capabilities are discussed,and the connection between Internet finance and commercial banks is revealed.Secondly,from a theoretical perspective,discuss the influence path of internet finance on the innovation ability of commercial banks,that is,analyze the direct,indirect,positive,and negative effects of internet finance on the innovation ability of commercial banks,and then pave the way for empirical testing in the next chapter.Thirdly,select the relevant index data of 16 listed banks in China from 2010 to 2018,select existing indicators and relevant theories for the research of new indicators,and use the principal component analysis method to construct an evaluation system for the innovation ability of Chinese commercial banks Build comprehensive indicators of innovation capabilities from five dimensions of eleven indicators: profitability,business and product innovation capabilities,human resource innovation levels,technological innovation levels,and innovation risk control capabilities,and establish a panel model between Internet finance and commercial banks Empirical testing.The results show that: Internet finance has a negative impact on the innovation capacity of commercial banks;Internet finance has different effects on different types of banks.Internet finance has a negative impact on the innovation capacity of joint-stock commercial banks and state-owned commercial banks,but it has a negative impact on the joint-stock system.The impact of commercial bank is greater.Finally,five suggestions are made based on how commercial banks can better develop their innovative capabilities:(1)enhance financial inclusion services;(2)commercial banks should strengthen cooperation with Internet finance;(3)enhance risk control capabilities;(4)comprehensive Promote technological transformation;(5)Improve data analysis capabilities;(6)Promote the development of retail business and attract customers in the long tail market.