Research On The Impact Of Internet Finance On The Profitability Of Commercial Banks

With the rise and prosperity of Internet information technology,big data and e-commerce,the business involved in Internet companies has gradually expanded into the field of finance,forming a new form of finance-Internet finance.Commercial banks have a pivotal position in China's financial industry.However,with the rapid development of Internet finance,the profitability of commercial banks has become a concern of the public.The development of Internet finance has not only challenged commercial banks,but also created rare opportunities.On the one hand,Internet finance shows great advantages in long-tail customers with its high efficiency,wide coverage and rapid development.On the other hand,commercial banks have been forced to introduce new ideas in terms of profit model,management system,business innovation and payment system,promoting the reform and development of the domestic financial industry.Therefore,studying the meaning of Internet finance,the status quo of development and its impact on the bank's profitability have important theoretical and practical significance for the Internet finance itself with rapid development of information technology and the development of the bank's future development strategy.Based on the analysis of the four theoretical hypotheses of financial intermediation theory,financial function theory,long tail theory and platform economic theory,This thesis analyzes the relevant excellent literatures at home and abroad.Taking the three major businesses of commercial banks as the main line,we introduce various services of Internet finance from the aspects of the main operating modes of Internet finance,characteristics and business models.It analyzes the impact mechanism of Internet finance on the profitability of commercial banks'asset business,liability business and intermediary business.From the results of theoretical analysis,at the current stage,the negative impact of Internet finance on the profitability of commercial banks' assets is not significant.However,it has had a major impact on the profitability of its debt and intermediate business projects.This thesis uses the panel data econometric model to select the data of five state-owned commercial banks,eight joint-stock commercial banks and three city commercial banks from 2009 to 2016 as research samples.This thesis takes commercial bank income ROA(total return on assets)of the commercial bank as the explanatory variable,and Internet financial indicator uses P2P online loan payment transaction amount and the third-party payment transaction amount as explanatory variables.The empirical analysis shows that the development of P2P online lending can have a significant positive effect on the profitability of commercial banks,and the development of third-party payment can have a significant negative effect on the profitability of commercial banks.There is a more complex competition and complementary relationship between Internet finance and commercial bank profitability.Based on the qualitative research of commercial banks and the problems and phenomena of specific evidence,this thesis proposes how to cope with the development of Internet finance and complement each other.Combine the technological advantages of Internet finance with its own financial advantages,retaining existing customers to attract potential customers and building an Internet financial ecosystem will be a new way for commercial banks to improve their profits.