The Impact Of Third Party Payment Development On The Profitability Of Commercial Banks

In recent years,the integration of Internet and traditional industries has resulted in many new business forms and business models,among which Internet finance is a typical representative.Under the multiple effects of Internet technology promotion,market-oriented reform acceleration and relatively loose Internet financial supervision policies,new financial service modes have emerged in the Internet financial field,such as third-party payment,crowdfunding,P2P,financial big data analysis service,etc.To what extent the development of Internet finance will affect commercial banks has aroused extensive discussion in academia and industry.In this paper,theoretical analysis,empirical analysis and mechanism analysis are used to study the impact of the development of the third-party payment,a typical internet financial model,on the profitability of commercial banks,and give suggestions on the next step of the response strategies of commercial banks.This paper defines the related concepts of Internet finance,third-party payment,profitability,etc.,combs and summarizes the related literature of Internet Finance and third-party payment at home and abroad,expounds the theoretical analysis framework of the impact of third-party payment on the profitability of commercial banks,and empirically tests the specific impact degree and mechanism,and finally proposes that commercial banks should Solutions to third party payment challenges.Third party payment will have impact,competition and spillover effects on commercial banks.Through the empirical analysis of panel data of 27 commercial banks in 2010-2018,it is found that the development of third-party payment will have a negative impact on the profitability of commercial banks,but there are significant heterogeneity effects in different types of banks,such as state-owned large banks,joint-stock commercial banks,urban commercial banks,etc.;at the same time,the development of third-party payment will improve commercial banks To increase the proportion of non interest income of commercial banks.In order to further study the influence mechanism of the third-party payment on the profitability of commercial banks,this paper empirically tests the impact of the third-party payment on the payment business of commercial banks,and finds that the scale of the third-party payment will have a negative impact on the total number of bank card payments and the amount of Bank card transfers,which proves that the impact effect is objective.This paper holds that the trend of intelligent and mobile financial industry is increasingly obvious,and the needs of user groups are increasingly diversified and personalized.Commercial banks should actively comply with the development trend of Internet finance,seize the opportunity of scientific and technological development,actively explore new payment modes,and effectively respond to the impact of the development of third-party payment;improve mobile banking business,simplify business process,improve customer experience,and enhance revenue contribution;develop financial management business through Internet channels,and establish a comprehensive Internet financial channel,Increase the proportion of non interest income;use intelligent technology and big data technology to improve service efficiency,reduce period cost,improve net profit level and profitability;strengthen cooperation with Internet finance companies,improve total factor productivity and profitability.