Research On The Correlation Between Internet Finance And The Profitability Of Rural Commercial Banks

The rapid development of Internet technology has ushered in a challenge for commercial banks.Relying on the continuous updating of network technology,the improvement of the profitability of commercial banks should be more proactive to move closer to Internet finance.Actively developing the Internet financial products business will help promote the profitability of commercial banks and enhance their core competitiveness.And it should be noted that there are some more prominent problems and constraints in the current commercial bank's profit mode.Especially in recent years,with the continuous reform of China's interest rate marketization policy,it has also caused the traditional profit mode of commercial banks.Great impact.This kind of shock is more obvious in small and medium banks.In the traditional profitmaking methods of commercial banks,they mainly rely on spreads to make profits,but the scale of loans in rural areas is relatively small,and it is difficult to achieve better results only through spreads.With the emergence of interest rate liberalization,the profitability of rural commercial banks has been subject to many,and the development of Internet technology has also had a great impact on its traditional profitability.In this context,rural commercial banks should actively cater to the "Internet +" development trend,and combine the actual situation of the region to launch product business based on new Internet technologies,and promote the development of rural commercial banking services through the "Internet +" approach.Urban small and medium-sized enterprises provide better financial support,which also plays an important role in fulfilling the social responsibilities of rural commercial banks.And through this kind of business innovation,it can also better develop new profit channels and promote its own profitability.This paper takes W rural commercial banks as an example to analyze the basic situation of the profitability of rural commercial banks in the context of Internet finance,and explore whether Internet finance will affect W rural commercial banks,and whether the impact is positive or negative? Is it an opportunity or a challenge to improve its operational capabilities? Through the correlation research of case analysis,it is concluded that the development of internet finance is the only way.At the same time,it draws inspiration from the case analysis and reasonably proposes feasible suggestions and countermeasures.In order to promote the enhancement of theprofitability of rural commercial banks and improve the quality of earnings,it has played a positive role.