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

China's banking industry has always been highly monopolized,making commercial banks' profit mode and profit model long-term biased,and the main source of profit depends on deposit and loan spreads.With the third-party payment obtained by the People's Bank of China in 2011 and the 2013 balance of treasures turned out,Internet finance began to develop rapidly.The development of Internet finance has eroded the income of commercial banks and challenged the profitability and profit model of commercial banks.Therefore,it is necessary to study the impact of the development of Internet finance on the profitability of commercial banks.This paper takes 180 commercial banks in China as a sample,and combines theoretical analysis and empirical analysis to study three main modes of internet finance based on the perspectives of profitability and profit model:third-party payment settlement,internet financing and internet financing.The impact on the profitability of commercial banks.Firstly,it expounds the status quo of Internet finance and commercial bank profit,including the reasons for the rapid development of Internet finance,the development status of Internet finance,the profit status of commercial banks and the advantages and disadvantages of the two.Secondly,the Internet is analyzed from a theoretical perspective.The impact mechanism of finance on the profitability of commercial banks;again,using the system generalized moment estimation method to analyze the three major Internet financial models of third-party payment and settlement,Internet financing and Internet financing,the profitability and profit model of commercial banks.Finally,based on the previous analysis,the conclusions of this paper are drawn,and corresponding countermeasures and suggestions are proposed based on the problems existing in the conclusions.The research shows that:(1)The three main modes of Internet finance,namely,the development of third-party payment settlement,Internet financing,and Internet wealth management have adversely affected the profitability of commercial banks;(2)The three main types of Internet finance The development of the model,namely,third-party payment settlement,Internet financing,and Internet wealth management,has prompted commercial banks to increase non-interest income,which in turn has led to the transformation of the profit model.According to the conclusions of this paper,combined with the current situation of commercial banks,this paper puts forward the following suggestions:(1)Regulatory departments:strengthen Internet financial supervision;reasonably guide the transformation and upgrading of commercial banks.(2)Commercial banks:Enhance the function of payment and settlement business;improve loan financing business;innovate deposit and wealth management business;attach importance to science and technology investment;increase non-interest income channels,expand diversified profit sources;change business philosophy,change business methods;Introduce financial innovation talents.