Study On Influences And Countermeasures Of Domestic Banking Business Under The Development Of Internet Finance

With the rapid development of various electronic information technologies, theclients come up with higher and more comprehensive demands to the contents andforms of financial services, while with monopoly position in financial industry andinflexible services and inflexible service procedures under the influence of traditionalbusiness concept and philosophy, the domestic banks have not in time adjusted theirbusiness and service positioning, not effectively given their play to financial servicesas traditional financial intermediaries. Then, supported by Internet facility,“InternetFinance” with features like accommodation of funds, payment and infomediary hasemerged, quickly wide varieties of Internet financial products, P2P Internet loans havegained the favor of the clients for their unconventional operation modes, designphilosophy of close-to-client demands and lower access thresholds, business scaleshave fast expanded in a short time. While pouring agility and dynamics into thefinancial markets, the development of Internet Finance also has rung the alarm bells tothe domestic banks, reminding them of that competition patterns of financial marketsto be broken in the future, the progress of innovation and transformation of currentbusiness modes and structures in the banking industries to be accelerated. Therefore,the writer has put forward the following thoughts and suggestions on the influencesand countermeasures of domestic banking business under the development of InternetFinance.Starting from elaborating the development history of Internet Finance, at thebasis of presenting domestic banking business under the influence of Internet Financeevolutions, the roles of domestic banking business have been analyzed, therelationships between Internet Finance and domestic banking business have beencomprehended. By using SWOT analytical method, the strength, weakness,opportunity and threat of domestic banking business and service under the impact ofInternet Finance services have been further dissected after taking into consideration ofboth external factors and internal circumstances. After SWOT analysis the gaps ofcurrent banking business and service have been discovered, by taking the advantageof successful development experiences of Internet Finance, the solutions andsuggestions on ideas of development, directions of adjustments, ideas of concretebusiness development and internal/external relationship management etc. have beenpresented. Referring to the development trends of future networked financial services,all these are designed to find out an innovative development path with unique featuressuitable to the banks, to enhance the financial service capabilities of the banks, tosmoothly achieve innovation and transformation of the banking industries and to faceinternal and external challenges with enough strength and power.The convergences of financial services and network innovations endow greaterand flexible development spaces for traditional financial institutions, now the domestic banks sit at the boundary between hard wealth and soft wealth, caring forcustomer demand, continuous adjustment and improving, focusing on market trend,carrying out financial innovation and facilitating development will ensure aprospective future for the banking industry. In the future the domestic banks togetherwith partners outside of the banking industry will make due contributions to buildinga harmonious and stable financial market environment, so as to help deepeningreforms of the state financial systems and facilitating the processes of interest ratemarketalization.