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

Global economic restructuring and implementation of national policies have not only made the supervision and control of the banking industry increasingly stringent,but also changed the original balance of competition within the financial system.The commercial banks and even state-owned banks also have to face greater challenges and competitive pressures,especially for the medium-sized and small-sized city commercial banks whose development scale is limited by regional or economic environment.The residents,small and medium-sized enterprises and self-employed individuals in the region are their main customer groups;nevertheless,the commercial banks are generally uncompetitive due to their relatively weak development strength.At the same time,the vigorous development of Internet technology has also made the e-commerce model got a place in the banking industry,which has increasing the difficulty of the challenges.At that time,the entire financial industry seized this turning point in succession to take good advantages of the Internet to integrate the resources and develop actively.Many emerging technologies,such as Internet payment,liquidation and electronization,have risen in response to such proper time and conditions,facilitating the close combination of traditional offline processes and Internet online transactions and generating a brand new industrial chain.In the new economic conditions,the traditional commercial banks will take the brunt on one hand,while they can also seize the opportunity to turn the foul and rotten into the rare and ethereal on the other hand.Based on the economic and social environment to the Internet financial background investigation and the previous year research literature,this thesis elaborates the content required by the entire article.This thesis aims to study the development status of Internet finance and commercial banks,actively explore the combined impact mechanism of both of them based on the Financial Intermediary Theory,Platform Economy Theory and The Long Tail Theory,and analyze the impact of Internet financialization products on the financing field,intermediary business,payment field and cost of commercial banks.Based on the four hypotheses proposed in the impact analysis above,this thesis collects the bank statements of the three echelons of commercial banks(the state-owned banks,joint-stock banks and city commercial banks,a total of 17 listed commercial banks)from December 2014 to June 2019,and adopts the panel regression model to conduct empirical tests and analyze the impact of Internet finance on the profitability of commercial banks.The results show that the Internet finance has different significant or insignificant impacts on the three types of banks.This thesis has also answered the hypotheses.In the later part,this thesis takes the Changsha Bank as a case to conduct a specific case analysis,draws the conclusion puts forward corresponding reasonable suggestions.The internet finance is a product of the financial market economy and the commercial banks must transform if they do not want to be eliminated.Only by conforming to the general environment and improving profitability can commercial banks not want to be squeezed out of the market by other financial industries.