Research On The Impact Of Internet Finance On The Profitability Of Commercial Banks

With the widespread application of technologies such as the Internet,big data,cloud computing,and artificial intelligence,financial and technological integration is being reinvented.Banking is being reshaped,and Internet finance has been reshaping the service blindness of the banking industry and infiltrating banks.Fundamental areas such as loans and other basic businesses and asset and liability management.External Internet finance companies have a negative impact on the profitability of traditional commercial banks to a certain extent.The current series of new business models for Internet finance that emerged from the current intelligent revolution have brought impacts on traditional banks and also brought benefits to the banking industry.As a rare opportunity,commercial banks will develop their own Internet financial services,retain stock customers to acquire incremental customers,and Internet financial customers and businesses will play a synergistic role in building an Internet financial ecosystem.This will be a new profit growth point for commercial banks.Internet finance has constantly emerged model innovation and theoretical innovation.There is competition and cooperation between the two sides.The disputes between the Internet finance and commercial banks are increasingly arguing,and Internet finance is in the process of striding forward,meeting and tradition.What kind of relationship a commercial bank produces is a question worth studying.For the transformation and upgrading of commercial banks,it is of great significance to understand the value of Internet finance to commercial banks and to determine the future trend of the industry.The impact of internet finance on the profitability of commercial banks is mainly from two aspects.One is the impact of external internet finance on the profitability of commercial banks,and the other is the impact of commercial banks on the development of internet finance business.The impact of Internet finance on commercial banks is revealed,mainly involving the impact of Internet finance on commercial bank assets,liabilities,and intermediate business items.Internet finance has a very strong driving force for commercial banks,and commercial banks will also absorb useful things in internet finance to continuously improve their own technological capabilities and service levels.This paper adopts the econometric model of panel data,and takes the return rate of commercial bank assets as the dependent variable,and selects the data of 16 major commercial banks from 2005 to 2016 as the analysis samples for empirical analysis.It is concluded that the rise of internet finance has brought opportunities and challenges to China's traditional commercial banks.Traditional commercial banks have indeed been transformed by internet finance.External internet financial companies will reduce the profitability of commercial banks.Internet finance has had a negative impact on the profitability of commercial banks.Of course,commercial banks are also working hard to upgrade their level of Internetization to enhance their profitability to meet the challenges of Internet finance.From this perspective,Internet finance has had a positive impact on commercial banks.Using a combination of qualitative analysis and quantitative analysis,we concluded that commercial banks should vigorously develop their own internet finance business and actively use Internet thinking to achieve transformation of business models.There is a competitive relationship between commercial banks and internet finance companies.Based on the research results of this article,we analyzed that commercial banks should improve their competitiveness and give advice or countermeasures against the impact of internet finance on commercial banks.