A Study On The Impact Of Internet Finance On The Business Of Commercial Banks In China

Since2012, Alibaba Group and Tencent Group as the representative of theInternet company, focused on using the Internet in the form of gradual penetrationwith force in the financial sector: third-party payment, P2P network lending andpublic financing during the financial model to the Internet and other traditionalfinancial intermediary institutions, particularly commercial banks launched a strongchallenge.Based on this background, this article will analyze and explore the Internettargeted financial impact on the three categories of commercial banks operatingbusiness. Firstly methodical define the concepts of the Internet Finance, as well aselaborate and analyze the development of the Internet Finance and salient features.On the basis of the relevant concepts and the status quo, the paper compares theadvantages of traditional commercial banks and finance between the Internet, alsoanalyzed the financial background in the Internet, commercial banks mainly threelevels of business trends by its impact, and explore analyzed Both business indifferent competitive situation, as well as policy recommendations in this situationshould be taken of traditional commercial banks. Thus, in the above discussion, thepaper obtained the following conclusions:Different business models of the Internet, mainly through the financial impactof commercial banks from commercial banks of fee and interest income businesssituation. Which, by the third-party financial products sales platform, third-partypayment platform and balances treasure affect other products that have an impact oncommercial bank fee and commission income is relatively large. Overall, Internetfinance operations of commercial banks will have some impact, but not a scourge.Compared with Internet finance, commercial banks at a competitivedisadvantage main channel class business and investment and wealth management businesses, for different types of business, commercial banks need to avoidweaknesses, and look for opportunities in cooperation with the Internet finance. Withthe development of China’s financial markets and the gradual opening up as well asthe Internet and its related technologies, commercial banks will face increasinglycomplex market environment, it faces competition will become more intense. But wealso find that it appears more of a commercial banking and financial services tocomplement and lead to a "catfish effect" to promote commercial bank reform andinnovation.The impact of the Internet for a variety of financial, commercial banks shouldfirst change their management philosophy, especially for the Internet financialawareness and addressing attitudes should adjust rapidly changing; secondly adjustbusiness strategy, re-enact strategic planning, strategic positioning and the need toadjust strategic alliances; and finally, it should be "all customer-centric" to expandthe business channels and innovative business processes.