A Study Of The Small And Medium-sized Commercial Banks Development Strategy In The Internet Financial Business Mode

As a capital-intensive and data-intensive service industry, financial business is always using the newest information technology to improve the quality of service, innovate service mode and enlarge service field. Since the birth of internet technology, especially social networks, electronic commerce and mobile communication take people into a new time of big data. The method of storing, sharing and mining of information which is based on cloud computing for large data analysis, makes data prediction and analysis more accurate and gets more hidden values from data. In the field of finance, new products and services originating from cloud computing and internet technology is also emerging. The concept of "the Internet financial model" has been proposed and caused widespread concern and attention. Therefore, research on Internet financial theory, the dynamic development of the industry and the traditional financial institution strategy appears especially urgent.An endless stream of innovation practice emerging in2013was known as the "Internet financial year". On the one hand, Internet companies like Alibaba have entered the financial field. Ali small loan, Yu Ebao, P2P and the third party payment have been recognized by many consumers; On the other hand, from the development of Internet banking to actively layout of the Internet financial field, large commercial banks benefiting from capital and technology actively respond to the Internet business competition, reengineer the bank according to the characteristics of the Internet business, and extend business to electronic commerce, consumer, information service and so on. New Internet financial markets and business model are taking shape.Although the small and medium-sized commercial banks in China make great efforts in adapting to changes in technology and market by building the service platform such as online banking, mobile phone banks, telephone banking and so on. However, due to the lack of its own development ideas, capital strength and technical reserves, small and medium-sized commercial banks’Internet financial development strategy is short of systematic and forward-looking. Compared with the Internet Co. and large commercial banks, their efforts and results are not obvious. Therefore, how to adjust the small and medium-sized commercial banks’ development strategy to overcome challenges and seize the opportunities in the Internet financial under the marketization of interest rate is a subject worthy of being paid high attention to and careful study.This paper is to sum up the impact of the Internet on the traditional banking theory from the Internet information technology and financial integration perspective by comparing the differences between traditional financial markets and Internet financial market. The author makes clear the opportunities and challenges that the commercial banks are facing through elaborating the influence of Internet financial on commercial bank development environment and competition pattern, and researches the change of financial industry business model such as the allocation of resources, the intermediary function, business process and value creation through the analysis of Internet financial related characteristics. Then the author gives small and medium-sized commercial banks some advices on Internet business innovation through the analysis of the current practices of internet companies, foreign banks, commercial banks and other small and medium-sized commercial banks. At the same time, using the thought of strategic management, this paper analyses the internal and external conditions of small and medium-sized commercial banks to develop the Internet financial business and gives development strategy and implementation path including overall strategy, development goals, customer strategy, business strategy and strategic support, from which small and medium-sized commercial banks can benefit in changing the old idea, using their own advantages, identifying the market positioning and participating in the competition of Internet financial market.