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

With the development of Internet technology and the application of big data,Internet finance has grown explosively.Internet financial products such as third-party payment,P2P online loans,and Internet funds have made large-scale attacks on the traditional financial industry,gaining a certain market share.A large number of new Internet finance companies headed by Alibaba have also emerged.The development of internet finance has exerted a great influence on the development of commercial banks in all aspects.Under such a background,it is of great practical significance to study how commercial banks can change business models and innovate products and services in the face of internet finance..This paper starts with the analysis of Internet profitability,and analyzes the impact of Internet finance on the profitability of commercial banks based on the theory of financial intermediation,financial function theory,and long-tail theory.Based on the third-party payment,P2P platform,and the operating model of Internet funds,the The profit structure of the bank was analyzed.Based on this,the third part discusses specifically the current status of internet finance development in China,the profitability of commercial banks,and the different impacts of different internet financial products on commercial banks based on relevant data.Then empirical analysis was conducted on ten representative commercial banks through the construction panel data.The empirical conclusions are as follows:The impact of Internet financial development on the profitability of the entire banking industry is negative,but the impact on the different types of banks is not significant,one.Relative to large state-owned banks,joint-stock banks are more likely to exert their advantages of“a small boat”in the face of the impact of Internet finance,but are even less affected by the impact of the Internet.The reason is that joint-stock banks are relatively profitable for state-owned banks.Relatively more sources,less dependence on interest income,and the flexibility of the joint-stock banks due to the fact that they face the impact of the Internet financial response often more timely and better able to keep pace with the times.Finally,the fifth chapter proposes targeted policy recommendations for joint-stock banks and state-owned banks based on empirical findings.Compared with the existing research,there are three possible innovations in this paper:First,this paper defines the Internet finance in the light of the needs of its own research.Second,most of the articles only conduct a comparative analysis of Internet finance and traditional commercial banks at the macro level.This paper analyzes the heterogeneity of state-owned banks and joint-stock banks.Thirdly,this paper establishes a panel data model and innovatively divides the impact of the Internet on commercial banks into revenue structure and profitability,and examines the different impacts of internet finance on different types of banks from two perspectives.Finally,targeted recommendations were made for the entire banking industry,as well as joint-stock banks and state-owned banks.