The Influence Of Internet Finance Development On The Innovation Ability Of China's Commercial Banks

With the continuous development of Internet finance,Internet finance has brought new Internet thinking to commercial banks while competing with commercial banks.Moreover,with the help of technology spillover effects and the squid effect,commercial banks have also begun to improve business processes and increase financial product innovation.On the basis of combing the research content of many scholars and collecting relevant information through multiple channels,this paper first introduces the concept,theoretical basis and development status of Internet finance and commercial banking innovation.Then,this paper analyzes the impact of Internet finance on the innovation ability of commercial banks from both qualitative and quantitative aspects.From a theoretical perspective,Internet finance has a two-way impact on the innovation ability of commercial banks in a direct or indirect way.In the process of empirical research,this paper measures the innovation ability of commercial banks by the proportion of non-interest income,and constructs the relevant index of Internet finance through text mining and factor analysis to measure the development degree of Internet finance.This paper uses the panel data of 52 commercial banks in China from 2013 to 2017 for regression analysis.The research results show that the development of Internet finance has improved the overall innovation ability of commercial banks in China,and the positive impact of Internet finance development on the innovation capabilities of different types of commercial banks is from joint-stock commercial banks,city commercial banks and state-owned commercial banks.Finally,based on the results of empirical research,this paper puts forward suggestions from three aspects.It is believed that commercial banks should enhance the innovation ability by transforming the management idea,strengthening the innovation of financial products and services,and improving the utilization level of financial technology to make full use of the development of Internet finance.The government should encourage commercial banks to strengthen cooperation with Internet companies in technology and platform according to their own circumstances.The regulatory authorities should continue to strengthen the supervision of Internet financial enterprises,and carry out differentiated supervision of different types of commercial banks,while further promoting the reform of China's financial system.