Research On The Impact Of Internet Financial Services On Commercial Bank Performance

The innovation of science and technology has changed people’s consumption behavior and payment mode.The deep combination of Internet technology and traditional finance has changed the form of China’s financial industry.With the continuous development of Internet finance,its market share has increased and its business types are rich.At the same time,the government also supports Internet Finance and introduces a number of measures to standardize its operation.The rapid development of Internet finance is both a challenge and an opportunity for the traditional banking industry.The development of Internet finance related business has an important impact on commercial banks.In the past,the single profit model has been unable to maintain the competitive advantage of commercial banks.If commercial banks want to continue to develop,they need to accelerate the transformation and upgrading,carry out their own reform,and improve the operating efficiency.Based on this,it is necessary to explore the impact of Internet finance related business on the business and performance of commercial banks.By clarifying the impact path of Internet finance business on the performance of commercial banks,we can provide targeted countermeasures and suggestions.Therefore,this paper first combs the relevant literature to provide a theoretical basis for the research.Secondly,it analyzes the business of Internet Finance and the current situation of sample commercial banks.At the same time,based on the long tail theory,financial intermediary theory and other related theories,This paper analyzes the impact of Internet financial business on commercial bank business and then on commercial bank performance,clarifies the impact path of Internet financial business on commercial bank performance,selects the data of third-party payment,Internet Finance and commercial bank from 2011 to 2019,and adopts two-way fixed effect model and random effect model.This paper empirically tests the impact of Internet financial business on the performance and business of commercial banks,as well as analyzes the heterogeneity of banks First,the impact of Internet financial services on the business of commercial banks.The results show that the third-party payment has a negative impact on the deposit business and loan business of commercial banks,Internet finance has a negative relationship with the deposit business of commercial banks,and the third-party payment and Internet finance have a positive impact on the intermediary business.The third-party payment increases the deposit cost of commercial banks by depositing the current working capital in the bank at the agreed deposit rate.Internet Finance absorbs a large number of retail funds through higher deposit rate,which has a negative impact on the deposits of commercial banks.Online consumer loans launched by third-party payment,such as Huabei and jiebei launched by ant financial services,provide credit demand for personal consumption,which has a certain negative impact on bank loan business.Third party payment has a positive impact on the credit card,payment settlement and asset custody business of commercial banks.Internet finance has an effect on the consignment business of commercial banks,which forces commercial banks to accelerate the transformation.Second,the impact of Internet financial business on the performance of commercial banks.The results show that the third-party payment and Internet finance have a negative impact on the performance of commercial banks.The two kinds of Internet financial business mainly affect the performance of commercial banks through the related business of commercial banks.At present,the intermediary business,as an expanding business of commercial banks,has attracted the attention of commercial banks.However,as the most important and basic business of commercial banks is still the deposit and loan business,on the whole,the Internet financial business has a negative impact on the performance of commercial banks.Third,the impact of Internet financial business on the performance of different types of commercial banks.The results show that the third-party payment can promote the performance of state-owned banks,while Internet finance can inhibit the performance of state-owned banks.Third party payment and Internet finance have a negative impact on jointstock banks and local commercial banks,and have the greatest impact on local commercial banks.Based on the above conclusions,this paper puts forward the following countermeasures:for asset business,we need to enrich the bank’s credit products and simplify the credit business process;for liability business,we need to tap the potential demand,improve the service quality,develop new financial products;for intermediate business,we need to establish a new big data center,improve the credit rating system,optimize the payment system,innovate the payment platform,and Strengthen cooperation with Internet finance companies.