The Research On The Development Strategies Of Bank Of HF In In The Era Of Internet Finance

In recent years, due to the development of internet technologies like big data, cloud computing and social network, the internet finance such as third party payment, peer to peer lending, crowdfunding and so forth rise rapidly.The internet finance is quietly changing traditional financial mode, the behaviors and spending habits of internet users and the way that commercial banks creat and realize their value in China, which brings both challenges and the power of innovation to the development of commercial banks. In the era of the internet finance, the ways that how to change challenges into opportunities and hold the position in the industry have become the focus of the banks.The essay summarized the related literature review and theories, then it analyzes the current situation of internet finance developped by domestic and foreign commercial banks. The essay takes Bank of HF as an example. Basing on PEST model and SWOT model, it analyzes the macro environment of the development of HF and its own advantages and disadvantages as well as the opportunities and challenges in the era of the internet finance. The supervision department of the financial sector have introduced some relevant policies to put emphasis on the healthy development of both traditional and internet finance. Currently, the economic has slowed down, and market-oriented interest rate reform has been further deepened. With the innovation of information technology and the popularization of network, the scale of China’s internet users is expanding, and the behavior patterns of internet users are also changing. Banking industry has invested huge money into IT, so the level of IT has been improved a lot. Bank of HF, a national joint-stock commercial bank, has a certain scale of asset and profit, and its risk control system is relatively perfect. However, its IT application level is not high, and it lacks interdisciplinary talents. Also its practice of the internet finance lags behind other banks. In the era of the internet finance, the means of credit rating are diversified. HF is faced with new opportunities that its current mode will transform and upgrade to a better business mode and have a broader market. However, the emergence of the internet finance also has brought with some challenges to HF. The essay concludes that in the era of the internet finance, the market of banking financial institutions becomes more competitive than ever. The rapid development of third-party payment gradually weakened and even replaced the intermediary payment function; the internet-enabled funds, financing and securities are eating into the middle business income; and P2P lending platforms shunt the needs of financing intermediary service of the customers owing to the lower transaction costs and more transparent information.Facing such challenges above, some positive measures has been put forward to cope with the impact of the internet finance in combination with HF’s condition. HF should always put the risk control in a core position and improve the internet security technology:the predominant online financial risk control mechanism and credit rating system; use "big data", establish CRM system and improve the ability of data processing; strengthen the construction of the internet platform, especially e-commerce and mobile financial platform; pay more attention to customer experience on IT solutions to improve the quality of service; expand marketing channels and form the social media marketing system; and cultivate interdisciplinary talents that can meet the demands of the internet financial times by applying E-learning platform.