Research On Competition And Cooperation Between Internet Financial Enterprises And Banking Industry

Over the years, our country’s financial industry is basically dominated by banks. With the development of the Internet financial, it breaks the original monopoly position of the commercial bank and brings a certain impact on banks. But if they both "fight each other," eventually it could "lose-lose". So appropriateing cooperation could be a new situation, and it will also benefit more and more people.So, in this paper I will study the competition and cooperation between the Internet financial enterprises and banks.Firstly, this paper analyzes the current situation of the development of the Internet financial companies. This paper first analyses the overall situation, then respectively analyses the current situation of the development of the P2 P platform, the raised platform and the third-party payment platform.Secondly, in order to study the competition and cooperation between the Internet financial enterprises and banks, it used the SWOT analysis method to analyze the advantages, disadvantages, opportunities and threats. Lastly, five main aspects are analyzed. Owing to the rich business experience,banks haye obvious advantages in strength, integrity and strength and integrity. In thetechnical strength of technology system and the using ability of new information technology, the banks are more conservative, while Internet financial firms are more radical. In the customer service concept and privacy protection, the bank use complex business process to protect customer privacy, resulting in poor customer service. While Internet financial enterprise attaches great importance to the customer experience, and they use new technologies, new methods, the commercial insurance to protect customers’ privacy. On operation and management concept, the banks are more self-centered,.While the Internet financial enterprises take the customer as the center.Then, through the analysis of the above five aspects, the article summarizes five competeing points between the Internet financial enterprises with commercial banks. One is that Internet financial enterprises bring "catfish effect" to the banks,and reversed transmission with banking from the management idea and so on.The second is that the Internet financial enterprises weaken the intermediary role of the commercial banks.Investors and financiers dealed directly. The third is that the Internet financial enterprises divvied up the customer resources of commercial banks and affect spending habits of financial consumers.The fourth is that the third party payment mode breakes the paying monopoly of the commercial banks.The fifth is that a source of income of commercial banks is divided. Its profitability is being challenged. This article mainly analyzes the effect that the Internet financial companies have on interest income, charges and commissions of banks.Finally, the article analyzes the macro and micro cooperation aspects between the Internet financial enterprises and commercial banks. At the macro level, the paper mainly analyzes the positive impact that they both have on the GSP-financial and interest marketization in China.At the micro level, the paper mainly analyzes the five points of cooperation.The first is to share customer information and strengthen the construction of credit reporting systemT the two sides have advantages and disadvantages in information symmetry. If they share customer information and connect online and offline information, it can greatly reduce the information asymmetry.The second is to learn from the Internet finance and create a financial Internet,for example making the "bank" P2 P platform and electric business platform. The third is to jointly develop financial products in order to meet the new financial demand. The more important thing is to promote enterprise cultural exchanges between the two sides.The forth is that the Internet financial firms and banks pay complementary functions.The development of the third-party payment platform is inseparable from the support and encouragement of commercial banks.The commercial banks can also use the third-party payment mechanism to expand marketing channels.The fifth is that the banks can be used as the depository institution of the third-party payment institutions.Banks can get considerable middle business income and expand the scale of deposits.The financial enterprise also can undertake risk control by themselves.Through the study of competition and cooperation, I draw the conclusion. At first Internet financial enterprises and commercial banks is a complementary process. Along with the development of both mutual fusion, they keep symbiotic win-win situation to change Chinese financial “soft power”.