An Analysis Of The Relationship Between The Internet Finance And The Commercial Bank

Since the information highway was put forward in the 1990s, the information technology, especially the Internet technology has been applied widely in industry, business, as well as normal people’s life. The information technology not only makes a great contribution to people’s life, but also transforms many traditional industries which include the finance industry. The so-called Internet Finance, which is created by many Internet companies because they obtain the advantage of Internet technology over commercial banks, is becoming more and more popular and thus has affected the business of the traditional financial institutions especially the commercial banks to some extent. Most of the traditional financial institutions have taken actions as a respond to the Internet finance, and some of them fight and restrict the development of Internet finance, and the others cooperate with Internet finance. Confronted with the rapid expansion of the Internet finance and its blow to the traditional financial institutions, many people including some scholars begin to think that the Internet finance era is coming, and the time of commercial banks will be history soon because the Internet finance may replace the commercial banks in the near future. Therefore, whether the Internet finance will be the terminator of the commercial banks? Why the Internet finance choose to step into the finance market which is a typical monopoly? After the Internet finance step into the finance market, which kind of relationship of Internet finance and banks can make them become the most profitable?To answer the three questions, in the first part, we will introduce the development of Internet finance both in China and the United States, and analyze the advantages and disadvantages of the Internet finance and the commercial banks. Based on the content of this part, we can find out the answer of the first question, that is in my opinion, it is not that easy for the Internet finance to replace the commercial banks. Secondly, we will resort to four models of the game theory to answer the second and third questions, that is the entrance of the Internet finance into finance market is inevitable and only the Internet finance and the commercial banks cooperate with each other can they make the most profit and our finance market be healthy and sunny. In the last part, the writer gives some suggestions to the Internet finance, the commercial banks and the financial authority.