The Impact Of Third Party Payment On The Profitability Of Commercial Banks In China

With the popularization of the network and the development of Internet technology,Internet finance is more and more integrated into every aspect of people's life.Third party payment with the help of the Internet,it has become one of the fastest growing industries in recent ten years.Since the central bank issued the first third party payment license in 2011,because of policy support and innovation driven,the third party payment quickly occupied the market.According to the data published by the central bank,the scale of third party payment in 2016 broke through 20 trillion yuan,up about 68%,and the high growth rate indicates that its scale will be further expanded.In the early stages of its development,third party payments were only an auxiliary tool for e-commerce,and did not have the ability to affect other financial institutions,but with the development of recent years,the third party payment extends its business scope from the initial payment tools to the areas of payment,settlement,consumer credit and investment and finance,which further promotes the development of Internet finance.Commercial banks are also one of the research objects of this paper.It is a monopoly in the traditional financial industry with a national background,but its volume is huge and its structure is complex.Therefore,the innovation is slow and can not adjust the direction of business in time.Therefore,the growth rate has slowed down in recent years.In contrast to the third party payment,the expansion of its scope of business overlaps with the business of the commercial bank.It competes with the commercial banks in the middle business,the deposit and loan business,the marketing and so on.With the rapid growth of the third party payment,the commercial banks feel a certain pressure,therefore,the commercial banks will take measures to deal with it.The third party payment and commercial banks are not only in competitive side,the commercial banks have rich quality customer resources,strict risk control system and advanced financial technology;the advantages of the third party payment lie in the rapid iterative Internet technology,innovative products and the amount of channels.The two sides can make full use of each other's strengths and carry out diversified cooperation to achieve win-win situation.The main content of this study is:the impact of the development of the third party payment on commercial banks.This article will collect data,build models,and test the impact of the scale of the third party payment on the profit level of commercial banks through empirical analysis.Then,based on the test results,we will make some suggestions for both sides.It is hoped that valuable information can be found in the conclusion,which can help the development of both sides and further promote the economic progress of our country.