Research On The Profit Model Transformation Of China's Commercial Banks Under The Background Of Internet Finance

Because most commercial banks in China adopt the profit model based on interest income,they have been earning huge profits for many years.But with the rapid development of Internet finance in recent years,the gross scale of these six major Internet finance models,third-party payment,P2P lending,crowdfunding,Internet funds,Internet insurance and Internet consumer finance,surge the new highs repeatedly.There are some new changes in people's consumption concepts,as well as consumption habits.The "good days" for commercial banks are running out.The development of Internet finance has deepened the degree of financial disintermediation and promoted the process of interest rate liberalization,which directly reduces the growth rate of interest income of commercial banks,narrows the commercial banks' profit space and severely hits the existing profit model of commercial banks.This paper studies the transformation of profit model of commercial banks under this background.First of all,this paper briefly introduces the concept and classification of the profit model of commercial banks,and analyzes the profit model of China's commercial Banks from three perspectives:the scale of assets and liabilities,the operating income and the income of intermediate business.Secondly,this paper introduces the meaning and three characteristics of Internet finance,and reviews the development of Internet finance in China.This paper also introduces and analyzes the development status of six major Internet finance models respectively,and then it analyzes the impact of Internet finance on the profit model of commercial banks from two perspectives:interest income and non-interest income.Thirdly,this paper analyzes the transformation of the profit model of commercial banks in the United States,Japan and Germany,and summarizes three transformation experiences of developing intermediary business,providing differentiated services and giving full play to Internet technology.Finally,this paper takes the HS bank as an example,and briefly introduces it,and then analyzes its current profit model from three perspectives,and introduces and analyzes the advantages,disadvantages,opportunities and threats of its transformation of profit model.On this basis,this paper puts forward four suggestions on HS bank's transformation under the background of Internet finance.The first step is to adapt to the trend of the Internet,change the business philosophy and adjust the development strategy.The second step is to innovate the types of business and promote the sustained and rapid growth of non-interest income.The third step is to attach importance to the construction of the staff team and increase the input of information technology.The fourth step is to strengthen Internet financial risk control.