Research On The Influence Mechanism Of Internet Finance On The Innovation Capability Of Commercial Banks

The development and popularization of Internet application are affecting the economic mode of several generations.As it is accepted by more and more industries,Internet finance comes into being.At present,with the further development of Internet technology and the support of national policies,the development of Internet finance has triggered the "catfish effect" of the financial industry.However,as the core sector of the financial industry,commercial Banks have customer groups,talent reserves and offline outlets that Internet financial enterprises do not have,and they are bound to spark with Internet finance.In this context,the research on the relationship between Internet finance and the innovation ability as the core competitiveness of commercial Banks is of great theoretical and practical significance to the innovation and reform of commercial Banks.This paper is divided into five parts.The first part is the introduction,which gives a general description of the background and significance of the topic of this paper,as well as the ultimate research purpose of this paper,and then clarifies the innovation and uniqueness of this paper as well as the possible deficiencies and areas for improvement.The second part is a literature review.Based on the understanding and analysis of a large number of existing literature,it defines the concept of the innovation ability of Internet finance and commercial Banks,explains the theory of financial innovation,and analyzes the performance of the impact of Internet finance on commercial Banks and the innovation ability it can bring to commercial Banks.The third part,starting from the financial innovation theory,analyzes the macro and micro mechanism of the influence of Internet finance on the innovation ability of commercial Banks.In the macro aspect,Internet finance promotes the innovation of commercial Banks by promoting the reform of financial system,influencing the change of economic structure and promoting the development of technology.Microscopically,Internet finance promotes innovation of commercial Banks by bringing new financial demands and reducing transaction costs.According to the mechanism of impact and the Internet brought about by the financial payment model,network model and the innovation of the financial management mode,it is concluded that the concept of financial bring new products and services through the Internet,influence scope of commercial bank financial intermediary function,change its profit as well as the four patterns and new ways to improve the innovative ability of commercial bank:concept of products and services,Internet financial financial products through the meager profit but high turnover,expansion of the Internet and mobile Internet channel and convenient and quick service concept reversed transmission innovation of commercial bank;In terms of financial intermediary functions,Internet finance forces commercial Banks to innovate by influencing their functions and status in the financial market,such as credit intermediary,payment intermediary,credit creation and financial service.In terms of profit scope and model.Internet finance enables commercial Banks to expand their profit scope and innovate their profit models through economies of scale and economies of scope.In terms of new risks brought by the innovation of commercial Banks,risks brought by regulatory policy changes of regulatory departments and risks brought by Internet finance all force commercial Banks to make innovations.On the one hand,they need to make innovations to avoid new risks;on the other hand,they need to make innovations in their risk management models.The fourth part is the empirical analysis of the impact mechanism by collecting a large number of official data.This paper first USES principal component analysis(pca)synthesis of each commercial bank innovation capability index,according to the result is obvious in 2016 each innovation ability of commercial Banks has obvious ascension,then use 12 commercial Banks in 2014-2017 semi-annual panel data through STATA14.0 software to analyze the influence of the Internet financial innovation ability of commercial Banks index.After the descriptive statistics and stationarity test of the data,the two indicators of Internet finance and the innovation ability of commercial Banks are analyzed in two models.According to mixed linear regression estimation results,both indicators of Internet finance have a very significant impact on the innovation ability of commercial Banks,but the estimation model is not ideal,so Huasman test is used to determine the model to be used.Observation Huasman test results,which can be found that the fixed effects and random effects model,by contrast,the fixed effects model is more ideal,but under the default standard error calculation method,usually assume that the disturbance as independent identically distributed,in order to eliminate this kind of correlation,this article USES the bank as the clustering of the robust standard error calculation of fixed effect model to estimate,observation model estimation results,can be found in terms of commercial Banks innovation ability,and two indexes of the Internet financial has played a more obvious role in promoting.The fifth part for policy implications,in order to better use of the Internet bring the positive effect of financial,for commercial Banks,can change the idea of earnings management and systematic management system,reorganize the formulation of organization structure,to develop a diversified and personalized products,developing comprehensive online channels,take the initiative to improve their technical level and draw on the experience of risk control of Internet financial management mode to improve their innovation ability;For government departments,on the premise of not affecting the level of infrastructure investment,they can reduce the investment cost of commercial Banks in expanding channels through the establishment of communication technology facilities,so as to promote the improvement of innovation ability of commercial Banks.For regulators,relevant laws and regulations should be improved and issued as soon as possible to construct the corresponding management system.Meanwhile,supervision should be strengthened to reduce the policy risks faced by commercial Banks,so as to improve their innovation ability.