The Study On Internet Financial Development And Commercial Banking Impacted By Internet Financial In China

With the vigorous development of electronic commerce in our country, the Internet companies have accumulated vast amounts of user data, and gradually mastered the needs and preferences of users of financial services, and its financial services by the original simple payment gradually penetrate into transfer remittance, microfinance, asset management, cash management, consignment funds and insurance products, and the other traditional commercial banks business areas. This financial innovation business of internet companies has brought broad prospects for the future financial sector. At present, the internet financial has penetrated to each sub-sector, including banking, insurance, fund and brokerage. And one of the fastest growing mainly is online payment, mobile banking, P2P online lending, and Money Market funds.Internet financial not only has brought new idea and new vitality, but also has brought new competition and new collaboration, and also has brought new challenges to the existing financial regulatory system. In the background of the rapid development of internet financial, banking which is the main business model in the field of financial sector, will have to face the new opportunities and challenges. Meanwhile, the five business models of internet financial respectively is how to affect the interests of the commercial banks, and the commercial banks should take what kind of coping strategies. So these problems are all need to study and discussion.This article discusses in detail the development course of the internet financial as well as the research results at home and abroad. This article, on the basis of summarizing the predecessors’research results, respectively elaborated that the internet financial is how to impact on the commercial banks from two aspects including the macroscopic qualitative analysis and the microscopic quantitative analysis. This study found:1. In terms of fees and commissions, third-party online payment platform is exerting the maximum pressure on the commercial banks. Because these platforms is breaking the monopoly of commercial banks in the trading and settlement, and changing the profit allocation model between the payment platform and commercial banks.2. On the asset side, it is limited that the internet financial model, including P2P online lending, small and medium enterprises online financing and raise public financing, has impacted on alternative financing of commercial banks. Mainly because of the Internet financial and commercial banking services in the different levels of each SME and retail customers, the Internet financial and commercial banks belong to complementary relationship among businesses, and the competition between them is weak, but it does not rule out that such market size has great growth room in the future.3. On the liability side, the Internet financial has a significant impact on net internet margins and net profits of commercial banks. On the one side, mainly because the Internet money funds, such as the balance of treasure, and online wealth management business absorb part of the bank deposits, and reduce the size of the bank deposit. At the same time, when the banks is lack of funds, they will finance from the interbank lending market. So a go between, they pulled the funding costs for banks, which continue to squeeze profit margins of banks. On the other hand, online third-party payment, financial products (e.g., funds, trust, insurance) online sales deprive of the part of bank intermediary business, and reduce the bank’s fee and commission income, the corresponding they also reduce banks’profits.4. Under the influence of different Internet financial model, the degree which Internet financial model affected large banks and small and medium-sized banks also exist differences. Through data analysis, it is concluded that small and medium-sized banks’fee and commission income affected by wealth management products online sales and Internet money market funds is more significant than large banks. On the contrary, small and medium-sized banks’ fee and commission income affected by the third-party online payment is weaker than large banks. But large banks’interest income affected by internet money market funds is more significant than small and medium-sized banks. Therefore, in terms of policy research and product innovation, small and medium banks and large banks should adjust measures to local conditions and take different emphases programs and strategies to ensure the stability of the banking sector’s sustainable development. The innovation of this article is to summarize the basis of previous studies and introduced several Internet financial development model in systems. And this article respectively use the method of qualitative analysis and quantitative analysis to study the influence of the Internet financial on commercial banks of our country industry. It is as far as possible through the data to prove that Internet financial impact on the banking of our country and offer competitive advantage strategy for our country banking industry under the background of the Internet financial. In addition, it also direct the direction for our country banking financial market’ healthy and stable development in the future.