Does The Cooperation Between Traditional Banks And Internet Companies Improve Performance Of Banks

The arrival of Internet finance is both an opportunity and a challenge for traditional banks,and how to transform and develop.Most domestic researches tend to analyze the impact,impact and countermeasures of Internet finance on the banking industry,and less empirically analyze the cooperation between traditional banks and Internet companies.Does the traditional bank really bring about an improvement in performance?Therefore,this paper hopes to supplement the gaps in this field and explore the competing relationship between banks and Internet companies,in order to provide some reference for the follow-up banks in the process of development and transformation,whether or not Internet companies cooperate and how to cooperate.This paper starts with the mode,characteristics and functions of Internet finance.Through the analysis of the development process of Internet finance,the relationship between traditional banks and Internet companies from cooperation to competition,and then to the division of labor and cooperation,is sorted out.According to the status quo,we seek the relevant research results at home and abroad to verify the evidence,and carry out relevant theoretical analysis.The theoretical hypothesis of this paper is put forward,and the empirical model is constructed.The method of DID+PSM is used to carry out regression analysis on the data used.Conclusions and policy recommendations.Through the analysis of the status quo and theory,it can be concluded that the cooperation between banks and Internet companies is the inevitable outcome of the integration process between the Internet industry and the financial industry.And through empirical research,it is found that:banks with cooperation with Internet companies have a ROE of 4.6%higher than the non-cooperative banks,indicating that cooperation can indeed bring improvements to banks.Through further empirical research,it is also found that the smaller the size of assets,the greater the benefit of banks in the process of cooperation with the Internet,and the performance of deep cooperative companies is 5.4%higher than that of shallow cooperative companiesFinally,comprehensive theoretical analysis and empirical research,the following recommendations:Banks and Internet companies can give priority to cooperation in the three major technical areas,strengthen industrial integration;banks in the convergence of emerging models,through the cooperation with Internet companies pay attention to risk control,reduce information Asymmetry;banks and Internet companies cooperate with each other in the process of cooperation,and vigorously promote the national inclusive financial plan.