Research On The Impact Of Internet Financial Development On The Efficiency Of Commercial Banks In China

At present,it is an era of rapid development of information technology.With the help of Internet technology and the application of intelligent terminals,people have achieved full information exchange and interconnection,and Internet companies have also used the integration of information technology and financial industry to innovate,change and control the diversity of customers.Demand,third-party payment,online financial management products,P2P network lending,and crowdfunding emerged as emerging internet financial models and businesses emerged in rapid succession.The undeniable reality is that today’s people’s daily lives are inseparable from these Internet financial products and services,and the important reason for the vigorous development of Internet finance is that,with the support of Internet technology and ideas,it has the ability to provide financial services compared to traditional commercial banks.It is characterized by safety,high efficiency,convenience,diversified services,and low participation threshold.At the same time,it needs to be pointed out that under the influence of Internet finance,the business model and operating efficiency of traditional commercial banks have been greatly impacted,a large number of potential customer resources have been lost,and the increase in the cost of capital has led to a decrease in the intermediary business income of commercial banks.Banks need to change their mode of relying on traditional deposit and loan spreads as their main earnings.They must actively face the challenges posed by the development of Internet finance,transform their business concepts,seize opportunities,and determine the externalities of Internet technology to commercial banks.It is entirely possible to innovate its own business model and improve its management capabilities by learning and using Internet technologies.At the same time,it will help commercial banks to further develop new areas,increase profit points,and then increase the overall operating efficiency of commercial banks.This paper focuses on the impact of the development of Internet finance on the efficiency of commercial banks.Although many financial industry entrepreneurs and scholars generally believe that Internet finance has subverted and changed the development of traditional banking,it can also be seen that it also promoted the banking industry.The pace of reforms,the changes in the efficiency of commercial banks are worth studying,and the lack of academic circles is exactly the role ofInternet finance in the effectiveness of commercial banks.This article summarizes the nature and characteristics of internet finance,analyzes its development model,and sorts out the channels and mechanisms for the development of internet finance on the efficiency of commercial banks.It also measures 23 commercial banks in China from 2007 to 2016 based on the DEA-Malmquist index method.With regard to total factor productivity and its decomposition efficiency,third-party payment,the main payment settlement indicator,describes the degree of Internet finance development,and builds a dynamic panel data model to empirically analyze the impact of Internet financial development on the efficiency of China’s commercial banks,and explore different types through grouping.The influence of commercial banks on the differences is designed to seek new space and motivation for the development of China’s commercial banks,seize the opportunity,make full use of the development of Internet finance to enhance operating efficiency,and enhance their core competitiveness.Through the study,the following conclusions are drawn.First,during the period of research,the operation efficiency of commercial banks in China is on the rise.The main contribution is the efficiency improvement brought by technological progress.Second,the development of Internet finance has promoted the efficiency of Chinese commercial banks.The development of Internet finance has promoted the technological progress of Chinese commercial banks,which has a negative impact on the pure technical efficiency and scale efficiency of commercial banks.Third,different types of commercial banks have different effects on the development of interconnected finance.On the whole,the development of Internet finance has the most positive impact on the efficiency of urban commercial banks,followed by large commercial banks,and the minimum impact is the joint-stock commercial banks.Specifically,the Internet financial development of city firm technological progress positive effect is most obvious,followed by joint-stock commercial banks,promote the smallest large commercial banks of the city commercial pure technical efficiency of the negative influence to a greater extent than joint-stock commercial banks,the scale efficiency of the financial development of the Internet is the biggest negative impact city commercial banks,followed by joint-stock banks,the negative impact of large commercial banks were the least.