A Study On The Influence Of Internet Finance To Traditional Commercial Banking Business And Its Countermeasures

At present, the Internet Finance as a product emerged in the combination ofInternet industry and Finance industry, has developed prosperously. Financialservices such like the third-party payment, E-commerce platform, on-line wealthmanagement, and P2P financing have entered our lives without much notice. TheInternet Finance has certain effect and impact on bank deposits, wealth management,loan and other traditional commercial bank business. Facing these issue, how docommercial banks deal properly and reinvent, is a topic worth deep consideration.This paper analyzes the impact of Internet Finance on traditional business incommercial banks, and proposes effective solutions. Therefore, it has contributedcertain research and application value to the study of this issue.By summarizing the concept and characteristics of the Internet finance, thispaper states its model, and analyzes its influence on traditional commercial bankbusiness. By applying detail cases from Industrial and Commercial Bank of China,this paper suggests target countermeasures for commercial banks. There are totallyseven chapters in this paper, the first one is an introduction, the second one is anoverview of Internet Finance, the third one is an analysis of Internet Financeinfluence to commercial banks, and the forth one talks about a combined competitionand cooperation relationship, there are suggestions for commercial banks to reinventin chapter5. Some cases from ICBC have been shared in the sixth chapter, and thelast one is the conclusion and expectation,This paper thinks, though Internet Finance has influence and impact ontraditional commercial bank business, it does not shake the base of commercial banks.Internet Finance and traditional banking business share a combined relation ofcompetition and cooperation. Commercial banks should adjust strategy, accumulatelarge data, strengthen cooperation, innovate business, improve the risk mechanism tospeed up the transformation, and therefore seek a win-win situation with Internetfinance.