The Manner Commercial Bank Take Part In Internet Finance

With the fast development of modern information technology, such as mobile payment, cloud computing and big data, and habits forming for Internet users to consume on Internet, the Internet Finance starts to thrive, which gradually changes people’s daily financial life and has a direct impact on the traditional commercial banking business.In some mature financial markets such as Europe and United States, Commercial Banks participate actively in Internet Finance, and develop the new business model-Direct Bank, which gets a high degree of market acceptance. Direct Bank business has occupied nearly 10% share in foreign banking markets, and the proportion is still expanding. Learning from foreign successful experience, Chinese traditional commercial banks have also actively develop Direct Bank business. However, due to the different economic and social backgrounds, the development of Direct Bank in China cannot directly copy the model of Direct Bank in foreign country. Therefore, on the basis of Chinese specific economic system, this paper studied what the Chinese traditional commercial banks should do to develop the Direct Bank business.Considering the fact that the essence of Internet Finance is financial intermediaries, the analysis of Direct Bank must combine both the Financial Intermediation theory and the Internet Finance theory. Firstly, by studying related literature, this paper intended to provide the advices for the development of Direct Bank in terms of financial products’factors and financial intermediaries’function. Secondly, this paper studied the meaning of Direct Bank and it’s development characteristics, then analyzed the reason for the development of Direct Bank, including the development background of Direct Bank, the comparative advantage of Direct Bank. These lays the foundation for the analysis of the development model of existing domestic and international Direct Bank.To study the case of domestic and international Direct Bank, this paper analyzed all kinds of development model from the sides of customer orientation, product design, marketing channels, and also uses the customers and business scale data as an index. At the same time, this paper divided the development model of Direct Bank both at home and abroad into four categories according to if the Direct Bank has offline channels or something else. Through the comparative analysis, this paper found the problems and obstacles in the process of Chinese Direct Bank’s development, obtained the enlightenment of foreign Direct Bank’s development experience, and then provided the countermeasures and suggestions on the development of Direct Bank in China. Based on the comparison of domestic and international Direct Bank’s development, this paper provided the suggestions for the development of Direct Bank in China, from the factors of financial products, such as customer orientation, customer and market demand, brand development, channel optimization, and competitiveness, and the function of financial intermediaries, such as improve efficiency, reduce cost, and control risk.All in all, this paper discussed what Commercial Banks in China should do to develop the Direct Bank, from the two aspects of financial product attributes and financial intermediaries functions, by adopting the method of literature research, analysis and comparison, and empirical approach, taking the theory of Financial Intermediation and the theory of Internet Financial as theoretical basis, studying the case of the development of the Direct Bank at home and abroad as practical basis.