Study On The Influence Of The Traditional Banking Brought By The Internet Financial

Internet financial has developed rapidly and cause wide public concern. At the beginning of the development of the internet financial, the internet financial has certain influence on the traditional banking sector, and speeded up the process of marketization of interest rate. In its early stage of development, regulators have no strict regulation on internet financial, this does not mean that the internet financial does not need supervision, regulators just create a relaxed environment for the internet financial to promote the development. Does this mean that the emergence of the internet financial is conducive to the development of traditional banking. In order to research this problem, this paper mainly from three aspects: credit risk, profit and efficiency analyze the impact of Internet financial of traditional banking.The main principle of success of the internet financial has a long tail, big data theory. The main theoretical basis of the influence that the internet financial make on traditional banking is theory of coase, In the process of reducing transaction costs, improve the efficiency of resource allocation. Based on the theory of industrial convergence the article analysis the future development trend of internet financial and traditional banking. Using the historical analysis, comparative analysis and data analysis to analysis the process. Content of this paper to explain the internet financial impact on traditional banking industry has certain practical significance, the result of research is that credit risk aspects: at the beginning of the development of the internet financial is helpful to reduce the bank’s non-performing loan ratio, the reason mainly has two aspects, one is non-performing loan ratio is passed on to the internet financial from the traditional banking, the second is the emergence of the Internet financial makes traditional banking crisis, in the process of improving their operating conditions to reduce the credit risk; In terms of profits, the internet financial squeeze part of the traditional banking profits, the reason is that the internet financial have lower costs, provide more convenient and efficient service, makes the customer more likely to choose Internet; In terms of efficiency: Internet financial overall improve the efficiency of the traditional banking sector, it also explains why internet financial reduces the credit risk of traditional market.Facing the influence of the internet financial, traditional banking industry needs to make more change to compete. Although internet financial promotes the development of financial markets, but also can not be ignored the potential risks at present, because there are some regulatory risk in the internet financial, like fraud, credit risk, legal dispute. The supervision mechanism on the internet financial is not perfect, so putting up some advice is important like prudential regulation, behavior regulation, consumer protection and so on.