Internet Financial Research On The Influence Of The Commercial Bank Profitability

With the rapid development of Internet information technology, big data and e-commerce, Internet companies will expand the scope of business to the financial sector and contribute to a new financial forms-internet banking. Internet banking refers to Internet companies relying on big data, cloud computing, social networking, search engines, APP and other Internet tools to achieve emerging financial business in financing, payment and information intermediary. Internet banking endowed with high transactions efficiency, wide coverage, rapid development speed and other characteristics has a significant impact on China's financial industry, especially the commercial banks, resulting in decreasing market share with traditional financial industry represented by commercial banks, forcing commercial bank to reform in profit model, management system, business innovation and payment systems indirectly promoting the great change and development of China's financial industry. Therefore, based on Internet banking and commercial banks to explore the connotation, development status of the Internet finance and its knock-on effects on the profitability of commercial banks has important theoretical and empirical implications for the development of Internet banking and settlement of strategies for commercial bank,Based on the study of Internet banking and commercial banks, discussing the impact of the Internet banking on commercial banks both theoretically and empirically. First, summarize the connotation, basic theory and development status of Internet banking; secondly, substitution effects on the commercial banks and financial innovation effect of the Internet are analyzed from the perspective of commercial bank business, financial functions and business model. While commercial bank business is divided into liabilities businesss, asset business and intermediate business; financial functions are analyzed in terms of commercial banks'payment intermediation, monetary intermediation and information intermediary function; the analysis of the business model is mainly concentrated on physical network operatoion, customer-centered service model and loan policy for micro business. Then, based on the data of 16 listed banks ranging from 2009 to 2014 building the dynamic panel econometric model and empirically testing how the Internet banking impacts commercial banks profitability. The results show that Internet banking has negtive influence on commercial banks profitability, indicating that innovation effect is less than the substitution effect. Finally, suggestions related to coping strategies and recommendations for commercial banksare are proposed based on the findings Commercial banks should "alternate management idea and increase financial innovation", "expand business model and apply the model of Internet banking in commercial banks ", "optimize commercial bank payment system".