Research On The Impact Of Internet Finance On Commercial Banks' Operation And Its Mode Transition

Technological innovation and technological progress always influence human activities.The inherent advantages of Internet finance,such as convenience,speed,low threshold,high efficiency,and being conducive to the realization of inclusive finance,have impacted the profitability of traditional commercial banks to a certain extent.China's commercial banks have been relying mainly on interest margin income as the traditional extensive profit model.Due to excessive reliance on credit scale,the profit model of China's commercial banks is single.Combining with the development process of foreign commercial banks,we can draw a conclusion that the profit model dominated by interest margin is no longer suitable for today's rapid development of the Internet era.Our commercial banks must fundamentally realize the transformation of profit model.Starting with theoretical analysis,this paper first expounds the background and significance of the study,and comments on the existing research results in the transformation of commercial banks' profit model.Secondly,this paper focuses on the development status and related characteristics of Internet finance,and then puts forward the impact mechanism of Internet Finance on commercial banks,such as diverting bank customers,increasing business costs,causing business runs,and forming the pressure of innovation.Then using the method of mathematical model and stochastic effect model and regression analysis to prove that the emergence of Internet Finance reduces the profitability of commercial banks,resulting in lower profits of commercial banks.Under the background of interest rate marketization,commercial banks need to vigorously develop intermediary business,take intermediary business income as the main source of income,reduce the proportion of interest differential income in total income,so as to realize the transformation of profit model.Finally,on the premise of theoretical analysis and empirical conclusions,the paper puts forward that commercial banks should transform their profit models towards diversification of profit models,intellectualization of institutions and differentiation of business models,and puts forward relevant policies for the transformation of profit models.