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

With the help of rapid development of Internet technology and ever-changing mobile communication technology,Internet finance has shown explosive development in recent years.Internet financial various products,while convenient to our life,are changing people's living habits and exerting a subtle influence on the deposits and loans of commercial banks,financial products,bank cards,payment and settlement business.That shunt the customer group of commercial banks in different fields to a certain extent,weaken the absolute superiority that commercial banks have long occupied in the financial industry by virtue of national credit guarantee,policy advantage and strong capital scale,impact commercial banks' business philosophy and management mode and weaken commercial banks' financial intermediary function.This paper combines theoretical analysis with empirical research to study the impact of Internet finance on the profitability of commercial banks.At the level of the theoretical analysis,this paper explores how Internet finance affects the profitability of commercial banks from the perspective of financial statements and evolution game,and makes a brief exposition of the future development trend between them.At the level of the empirical research,complying with the new changes of the current economic situation,this paper integrates and analyzes the main modes of Internet finance,which are used as entry points to empirical research.Based on the panel data of 28 listed banks in 2012-2017,this paper constructs the regression model by using the mainstream regression analysis method to empirically study how the commercial banks' profitability is affected by Internet finance under different modes at the present stage,and to make a deep explanation for the empirical results.It is found that with the improvement of the legal system related to Internet finance and the filling of the regulatory gaps,Internet finance will gradually moving towards strong.In addition to the inherent innovation of Internet finance and the constant pursuit of self-improvement in their ability of business,it will definitely have a significant impact on traditional finance with commercial banks as its core.This impact is bothshort-term and long-term.In the short-term,Internet finance impacts the profitability of commercial banks,changes the business philosophy and management mode of commercial banks,and shakes the intermediary function of financial media of commercial banks.However,in the long run,at the process of evolution game between commercial banks and Internet finance,commercial banks will continue to learn and imitate,and actively take advantage of the advantages of technology,cost,channels,information collection and data processing of the Internet,and play its advantages in talents,capital,risk control.Besides,commercial banks will enhance the cooperation with Internet finance and jointly build a benign financial development pattern.Therefore,there is still room for improvement in the profitability of commercial banks in the future,and commercial banks still have broad space for development.