Research On Banking Retail Business Under The Influence Of Internet Finance

Computer technology and Internet have been developing rapidly and widely used in these two decades, which made them become a necessity in our daily life. And they also to put great influence to people’s behavior patterns.In financial service, the full use of information technology has greatly promoted the innovations of financial products and services, such as online banking, mobile banking and even "we chat" banks. Internet, as the representative of modern information technology, has slowly produced fundamental effects on people’s financial patterns, especially mobile payments, social networks, search engines and cloud computing. Within the scope of the global, Internet banking in the retail customer acquisition and management has been able to be seen three important trends.Firstly, the mobile payment substitutes traditional payment services (such as credit card, bank transfer).It can gain considerable customer base in a short time With the penetration of mobile communication devices over the banks or ATM machines, combined with the cooperation of mobile communications, Internet and finance, mobile payment is convenient and free of charge, which has a great advantage to customers.The second trend is "everyone loans" (direct lendings between individuals via the Internet) instead of the traditional deposit and loan business. Because of the risks and benefits are difficult to take into account, small and micro enterprises NPLs remain high. Formal financial institutions have been unable to effectively address the problem of financing SMEs. But modern information technology makes it possible.The third trend is the combination of social media and traditional finance. In recent years, Internet companies like we-chat and Alipay can gain a lot of customers overnight.Internet financial model can produce huge social benefits, improve resource allocation efficiency, promote economic growth, while significantly reduce transaction costs. More importantly, in the Internet financial model, market participants are more popular. Innovation and technology often lead to disruptive changes in the traditional industries. Internet banking for traditional commercial banks is a double edged sword.Facing the challenges of Internet finance, commercial banks have to make changes and upgrades. It is critical for banks to make adjustments of the traditional thoughts and pattern. They must speed up the pace to keep up with the market and customer needs, in order to survive and develop. China Citicbank has developed rapidly in recent years, occupied a certain market, achieved some success in the field. However, due to the bank itself, it cannot be compared with Alipay, Tencent and other Internet companies. Therefore, it is of great significance to develop a reasonable strategy to coping with these new trends. I hope to provide some thoughts of traditional retail banking’s development through the analysis of CITIC Nanjing Branch.