Research On The Profit Model Of Urban Commercial Banks Under The Background Of Internet Finance

The current rapid economic development and the strict supervision of banking institutions by state agencies have led to changes in the original competitive situation of the banking system,and domestic banks have begun to face greater pressure from competition.Especially for small and medium-sized city commercial banks,the development is more severe.Because the customers are mostly small and medium-sized enterprises and local residents,the overall strength is relatively poor,and there is no competitive advantage compared with large banks.At the same time,with the rapid growth of Internet technology and e-commerce,Internet finance has come into being.The deep integration of internet payment and industry,and the combination of online and offline services constitute the direction of important business distribution.Under the new situation,the profitability of traditional city commercial banks is being impacted,and it is urgent to optimize and adjust the profit model.This paper takes Changsha Bank as an example to study and analyze the profit model of urban commercial banks in the context of Internet finance.First,it analyzes the research background and significance of Internet finance.Based on this,it reviews domestic and foreign related research,clarifies the innovation of the article and expounds the basic theory of Internet finance and profit model.Next,the overall analysis of the current state of profitability of city commercial banks is still a traditional profit model dominated by interest rates.There are problems such as a single overall profit model and unbalanced development of intermediary businesses.Based on this,a case study of Changsha Bank was carried out to analyze the overall development status,major profit points,and existing problems.The regression model was used to supplement explanations and predict future trends.The study found that although current interest rate income It is still an important source of earnings,but it has already shown a trend of shifting to a balanced interest rate spread and non-interest income balance.Finally,on the basis of the previous research,we conclude that the emergence of internet finance is the result of the development of the financial market.Its development promotes the transformation of city commercial banks.In order to deal with the impact of internet finance on various aspects of urban commercial banks,China's urban commercial banks should change profitability models as soon as possible,from a profit-dominated profitmodel that focuses on credit business to a balanced development of intermediate businesses and interest-bearing businesses.The intensive profit model,by summarizing the case studies of Changsha Bank,proposes strategies for the profitability of China's urban commercial banks.