Research On The Conflict And Integration Of Internet Finance And Traditional Finance

The rise of the Internet finance in recent years has presented both opportunities and challenges to different aspects such like service channels and modes,customer base,and the Interest rate liberalization.At the meanwhile,the traditional commercial banking is facing great impact on the fields of gross settlement,financing,and intermediate business,and also suffering a degree of profit billabong.It indicates that the Internet evokes vitality of the financial market,bringing not only new opportunities but also potential conflicts and challenges to the traditional banking.This paper presents the analysis of the competition an conflicts between the Internet finance and the traditional commercial banks,and explores the developing orientation in which the two parties are integrated.The commercial banks are researched in this paper.The conflicting factors existing in the market competition of the traditional commercial banks are analyzed in the context of "Internet Plus" By using credit receipts and payments and balance sheets from the domestic large commercial banks,and Internet financial scale data as well,the VAR model is constructed,which is used furthermore to explore the impact of the Internet finance on the traditional commercial banks,and to seek the convergence mechanism and roadmap for the Internet finance and the conventional banks.The research shows that the conflicts between the development of the Internet finance and the traditional commercial banks in a short term,for instance,the impact to the monopoly position of the traditional banks in credit loan and payment will keep increasing and the competition will keep fierce in the near future.However,the positive correlation relationship between these two parties will present when the Internet finance develops to some extent,and the complementary relationship will also arise.Therefore,the convergence of the commercial banking and the Internet finance is a creative action in the new normal of our economy.Moreover,our financial regulation department should be able to understand the new ecosystem caused by the Internet finance,improve and perfect the relative law,and reinforce the Internet finance regulation.