A Study On The Third-party Payment's Impact On Retail Business In Chinese Commercial Banks

In recent years,with the fast development of internet technology and the common use of smartphones,the third-party payment providers are not satisfied with the cooperation with commercial banks through the internet technology.Thanks to a large number of customers they have accumulated and quickly-developed big data technology,they have been deeply involved in many core banking business which includes the payment and settlement business,the consumer credit and the personal finance.The third-party payment then has a marked impact on the retail business of commercial banks.At the same time,due to the interbank restriction and the increase in market fluctuation,the commercial banks have planned to mainly develop retail banking business.Facing the challenges from the third-party payment providers,the commercial banks have fastened the retail business to win the fierce competition while putting their own advantages to the best use.The paper firstly combs the development history of the third-party payment and retail banking business,The paper firstly combs the development history of the third-party payment and retail banking business,then,based on statistics,elaborates their current development situation by showing and analyzing graphs.Secondly,the paper theoretically analyzes how the third-party payment affects the retail banking business.It illustrates the positive influences from the following three angles which include the innovation of retail banking products,the development of E-commerce platforms and the enhanced cooperation with the third-party payment platforms.The analysis of negative effects would focus on the third-party payment's impact on personal deposit,personal loan,credit card,payment and settlement business and fund sales business.Analyzing the third-party payment's impact on retail business in 16 Chinese listed banks,the paper comes into a conclusion that the third-party payment would have both positive effects as well as the negative influences on the retail business.The conclusion then was proved by Williamson's Inverted-U Theory.At last,the paper advises some coping strategies for commercial banks which include speeding up independent innovation,expanding scene construction,refining customers' management,deepening mutual communication and cooperation,enhancing risk management.