Study On The Impacts Of Internet Finance To Commercial Banks

The Internet has been developing at an astonishing speed since the20thcentury. Injust a few decades, it has been an important part of people’s life and has changedpeople’s way of life. With the development of information technology, finance andnetwork technology have been merged, which leads to a new field---the InternetFinance. The Internet Finance has grown quickly and has become an big trend. It hasboth the essence of finance and the spirits of Internet---“freedom, fairness,cooperation, sharing”. By using the features of the Internet technology---gatheredcustomers and quick passing, the Internet Finance provides the customers with moreconvenient and efficient investment and financing services.The Internet Finance didn’t happen overnight and many factors contributed to theInternet Finance, which gave birth to this industry. First, network technology has laidthe science and technology foundation for its development. The informationtechnology has entered into a brand new modern era. Cloud counting, big data etchave been developing gradually. Advanced information stored and search technologyhas provided significant technical support for the birth and growth of Internet Finance.Second, the commercial banks in China has an important role in the financing field.Although traditional banks have an quick development in business, there still existsome shortages, such as weak data processing and developing capabilities, smallcredit customers led by cumbersome business process, difficulties in financing ofsmall and micro enterprises. These shortages can be avoided in the Internet Financefield to provide chances for the development of Internet Finance. Finally, complexsystems theory, the platform economics, financial repression and deepening theory,long tail theory etc have provided theoretical support for the birth and development ofthe Internet Finance. Various factors above have contributed to the development ofInternet Fiance. It has become hot today and has become the mark of financialinnovation.The commercial banks have developed in an astonishing speed in recent years andhave played an important role. But they started late in e-commerce. Since there aresome shortages in technology and management etc, they have a bad position incompetition. In today’s highly developed information technology, commercial banks should develop e-commerce and the Internet banking, which makes them have thefunction of convenience and safety. Only in this way can improve the corecompetitiveness of our banks and can increase their market share.The quick development of our Internet Finance market has an enormous effect oncommercial banks. First, this paper is going to analyze Internet Finance from itsconcept, features and development etc to explore the essence of Internet Finance.Second, the Internet Finance effects on commercial banks will be analyzed. At thesame time, the advantages&disadvantages and chances&challenges of thecommercial banks are going to be summarized in the Internet Finance background byusing SWOT analyzing. Finally, combined with the above discussions, the paper isgoing to summarize how our commercial banks deal with the new field---InternetFinance, how to innovate, how to change the challenges into chances and how toseize the opportunity to further expand.