The Impact Of Internet Banking On Profitability Of Commercial Banks

In recent years,internet finance is developing rapidly.It represented by third-party payment,baby finance and P2P network loans,which swept through the financial market with new financial model.Thus,commercial banks face unprecedented challenges.Mainly through three platforms,internet finance grab market share with commercial banks:third-party payment,internet investing and internet loaning.The emergence of internet finance has hit the banks that have stayed at the top of the pyramid for a long time.The era"lying down and making money" of commercial banks is over.Financial markets are about to face a big shuffle,and financial landscape is about to re-emerge.Against this background,is internet finance a new force or a devastating blow for commercial banks?It has been of great concern.At present,there is no conclusion on the influence of internet finance on commercial banks and how it affects them.And this question is crucial for commercial banks to make effective decisions to face the shock of internet finance.Therefore,it is necessary to accurately judge the influence and study how it effects.Firstly,after collecting and reading a large number of domestic and foreign literature,making a theoretical study on this issue,the explanation of internet finance by scholars at home and abroad are reviewed,and the different views on the issue of the impact of internet finance on commercial banks are introduced,then gives an overview of the definition,main types,development and current status of internet finance.From three core businesses of commercial banks:the debt business,assets business and intermediate business of the bank,the influence of three major internet financial platforms:third-party payment,internet investing and internet loaning respectively on the three core businesses of commercial banks is analyzed.With Z branch of ICBC as a research object,the background and business development of it is introduced,obtaining useful information from a survey interview with the staffs,through the analysis of the real operation data from 2012 to 2016,from the three aspects of deposit and loan interest rate,intermediate business income and operation cost,this paper objectively verifies the negative influence of internet finance on profits of commercial banks and the causes.Then,by summarizing cases and making countermeasures for relevant problems,we hope to apply the useful information obtained to the reality,so as to provide reference for the future development of commercial banks.Then the case is summarized.In view of the problems relate,strategy is responded,the useful information obtained is hoped to be applied to reality and reference for the future development of commercial banks is provided.Finally,the conclusion is drawn,although internet finance in a certain period of time will hit the profitability of commercial banks,but in the long term,will not subvert commercial banks,commercial banks will implement the reform of internal transformation in the huge challenges,strengthen cooperation with internet financial companies,the future they will move towards each other,mutual benefit and win-win development path.