The Impact Of Third-party Payment On The Profitability Of Commercial Banks

With the development of the third-party Payment Platform,the pattern of China's financial market has changed,and the monopoly of commercial banks has long gone.As a "pioneer" in the development of Internet financial business,the scale of Caifu Tong,alipay and wechat has been steadily rising,while becoming more and more mature,and accounts for a considerable proportion in the payment and settlement of the whole country,china has formed a new pattern of modern payment.Faced with the threat of the third-party Payment Institution,commercial banks are deeply affected,which force them to strengthen their own transformation and further promote the innovation of financial products and the transformation of business models.At the same time,China's interest rate marketization is gradually and continuously improving and deepening,which has further narrowed the interest margin between bank deposits and loans,and undoubtedly has also had a huge impact on the traditional deposit and loan business of Commercial Banks,it intensifies the competition among commercial banks and deepens the influence of third-party payment on the profitability of commercial banks.Therefore,in the current environment,from the theory and practice,it analyzes the concrete influence of the third party payment on the Commercial Bank's profitability,as well as the effect of the Commercial Bank's strategic response to the challenge,it is undoubtedly of great practical value for improving the comprehensive competitive ability of commercial banks,achieving sustainable development and meeting the challenge of third-party payment.This paper first reviews the relevant literature on the development of third-party payment,and on the basis of analyzing the current situation of the development of commercial banks and third-party payment platforms,it theoretically summarizes and analyzes the different business of third-party payment to commercial banks,including deposits,loans and non-interest income,the nature and effects of the various shocks,and then,using the panel data of commercial banks,this paper analyzes the total impact effects of third party payment on deposit business,loan business,non-interest income and profitability of commercial banks,and finally puts forward some countermeasures.In the analysis of the impact of third-party payment on the business ofcommercial banks,this paper finds that the third-party payment on all kinds of business of commercial banks,including deposit business,loan business,non-interest income business,etc.,can have all sorts of different kinds of impacts.As far as deposit business is concerned,third-party payment will absorb large demand deposits,which will affect the deposit business of commercial banks,but some cash transfers will not affect the deposit business of commercial banks,and even some behaviors are complementary,relying on the completion of commercial banks,while commercial banks and third-party Payment Cooperation and complementarity;at the same time,commercial banks are also constantly learning from third-party payment technology and models,constantly expanding business areas,launch a new product range.These strategic effects will not only offset the negative impact,but also bring about a positive impact.The same is true for lending and non-interest income operations.Therefore,in theory,the impact of the development of third-party payment on the business and profitability of commercial banks has the characteristics of negative substitution,irrelevance and complementarity,as well as commercial banks to take strategic measures resulting from the strategic.In order to further test the comprehensive impact of third-party payment on the business and profitability of commercial banks,based on the above analysis,in the empirical part,this paper makes use of the annual report data disclosed by 30 commercial banks in China,and uses panel regression model,under the control of relevant factors,this paper analyzes the combined effect of the development of third-party payment on the different business and the overall profitability of commercial banks,and analyzes the relationship between the development of third-party payment and the Quantitative analysis of the third-party payment.The results show that the development of third-party payment has a significant negative impact on the deposit business,no significant impact on the loan business,and a significant positive impact on the non-interest income business,the impact on the overall index profitability is significantly negative.This shows that the vigorous development of third-party payment has had a negative impact on the business development and profit space of commercial banks.Although commercial banks are actively innovating in technology and business,long-term win-win cooperation between the two sides is still needed,let commercial banks grow up again in competition and cooperation,develop together,and try to form a new financial market pattern under the new normal.Finally,the article summarizes and gives some suggestions for commercial banks to deal with the development of third-party payment,including consolidating the existing superior business,actively promoting the transformation of direct-selling banks and outlets,and strengthening the cooperation and cooperation between banks and Internet finance,promote each other and jointly promote the healthy and long-term development of China's financial market.