What is the impact of Internet finance on traditional commercial banks?

1. Internet finance changes the way commercial banks create and realize value \x0d\ Over the past decade, China's commercial banks have achieved sustained rapid and stable development, with a compound annual growth rate of nearly 20% in total assets and liabilities. However, so far, the development mode and profitability of commercial banks is still basically the traditional "heavy investment rather than efficiency, quantity rather than quality, scale rather than structure, speed rather than management" of the external crude growth mode, "one high, two low, three excellent" connotation of the Intensive operation has a long way to go. Currently, spread is still the main source of income for Chinese commercial banks, and in 2011, the proportion of non-interest income in China's banking industry only accounted for 19.3%, despite the increase. From the perspective of traditional value creation and value realization of commercial banks, since their customers are mainly large enterprises with stable demand for loans and high-end retail customers, security, stability, low cost and low risk are the basic demands of customers, and the value creation and value realization of banks are mainly to provide customers with safe, stable, low cost and low risk financial products and services by means of their professional technology, complex knowledge and complicated processes. products and services. \x0d\ Under the Internet financial model, the types of target customers have changed, customers' consumption habits and consumption patterns are different, and their value demands have undergone a fundamental transformation, making the traditional way of value creation and value realization of commercial banks completely subverted. Market participants have become more popular and widespread, and small and medium-sized enterprises, entrepreneurs and the general public can participate in all kinds of financial transactions through the Internet. Financial product or service providers are those emerging financial institutions that focus on providing customers with fast and low-cost services, and their social division of labor and specialization are greatly diluted. Customers are mainly SME customers and young consumers who seek diversified, differentiated and personalized services, with convenience, speed, participation and experience being the basic demands of customers. \x0d\ Internet financial institutions compete on the basis of network technology, information technology and data processing technology, and business processes such as demand response, maturity matching, risk pricing and management are greatly simplified. Under the Internet financial model, the products and services provided by financial institutions to their customers are modular asset portfolios on data analysis, and the advantages of the kind of financial products based on intensive knowledge and complex technology provided by traditional commercial banks to their customers in the past have been weakened. According to the theory of disruptive innovation, Internet finance has led to an evolution of the basis of competition for traditional commercial banks, shifting from security, stability, low cost and low risk to speed, convenience and experience, which in turn has begun to disrupt the core business of banks from the bottom of the pyramid. \x0d\2.Internet finance has led to the marginalization of the payment function of commercial banks \x0d\2.Internet finance mode of payment is based on mobile payment, which transfers the value of money through mobile communication devices, wireless communication technology to settle the debt relationship. Internet finance further accelerates financial disintermediation, marginalizes the payment intermediary function of commercial banks, and substitutes their intermediary business. For example, Alipay, Paypal, Ebay and Express have been able to provide customers with settlement and payment services such as collection and payment, automatic account splitting, as well as money transfers and remittances, air and train ticket purchases, and electricity and insurance payments, creating a clear substitution effect on commercial banks. \x0d\ So far, the central bank has issued payment business licenses for five batches before and after, *** counting 197 third-party payment companies, including Internet giants such as Alibaba, Tencent, Shanda, Baidu and Ebay. At present, the business scope of the third-party payment has covered cell phone and fixed telephone payment, bank card payment, currency exchange, prepaid card issuance and acceptance, Internet payment, digital TV payment, etc., the services provided by the simple payment, settlement penetration to the entire industry chain to provide industry solutions, the regional scope of the breakthrough in Beijing and Shanghai and the coastal expansion of Henan, Shanxi, Sichuan, Chongqing, Inner Mongolia, Heilongjiang, and so on. Central and western regions. \x0d\ With the development of the Internet and e-commerce, China's Internet third-party payment platform transactions, the issuance and circulation of virtual currencies is getting bigger and bigger, involving more and more users, third-party payment has become a huge industry. According to data from Econometrics, the annual transaction size of China's third-party Internet payment market reached RMB 2.16 trillion in 2011, a 99% increase from 2010. Although it is a far cry from the nearly 2,000 trillion yuan of business processed by the national payment system in that year, third-party payment organizations have reached into the core business of banks and have established a dominant position in the field of electronic payments. Industry insiders expect its transaction volume to explode in the next few years, and its business share will continue to rise. \x0d\3.Internet finance reconfigures the existing financing pattern \x0d\ under the Internet finance model, the Internet financial search platform for the supply and demand of funds for both sides to provide an opportunity to discover the market, while modern information technology greatly reduces the information asymmetry and transaction costs, the two sides of the other side of the information basically to achieve a complete understanding of each other, the capital intermediary will no longer be needed, replaced by the capital information intermediary. \x0d\ For example, Zopa, the world's first lender for all, established in March 2005, serves as an information intermediary in the process of money lending: on Zopa's webpage, lenders can list the amount of the loan, the interest rate, and the time when they want to lend out the loan item; the borrower is free to look for a suitable The interest rate agreed upon by the borrower and lender is mainly determined by the lender's risk preference, with risk-averse lenders pursuing higher interest rates and risk-adverse lenders settling on lower interest rates to avoid the associated risks. Similarly, the domestic Rong360 is also committed to providing customers with professional financing and loan search services, realizing the direct interface between users and business people, so that users can obtain more cost-effective financing and loan products through search. \x0d\ It should be emphasized that Internet finance has unique advantages in serving small and medium-sized enterprise financing and personal consumption loans, including a simple loan approval process, fast disbursement speed, and rich and diverse product types. For example, Ali Credit, which focuses on financing services for small and medium-sized enterprises, has a Taobao merchant loan process that includes a 3-minute application, no manual approval, and a 1-second payment to the account. In recent years, the Internet financial development momentum is exceptionally rapid, which Ali Financial since its inception in 2010, has accumulated more than 130,000 small and medium-sized enterprises to provide financing services, the total amount of loans amounted to 28 billion, in the first half of 2012 on the cumulative issuance of loans of $ 13 billion, the new loaned enterprises 40,000, the non-performing loan rate of only 0.72%. \x0d\ It was also reported that even some experts predicted that "if Alibaba gets a banking license, it won't be a problem to surpass Minsheng Bank within three years!" . Therefore, the Internet financial model can not only achieve the same resource allocation efficiency as direct and indirect financing, but also significantly reduce transaction costs. Xie Ping, deputy general manager of China Investment Corporation, pointed out that 20 years later, "Internet direct financing market" or "Internet financial model" may form a third financial mechanism that is different from both indirect financing of commercial banks and direct financing of capital market. The "Internet direct financing market" or "Internet financial model" may form a third financial mechanism different from both commercial bank indirect financing and capital market direct financing. and the resulting problems of adverse selection and moral hazard. Therefore, capital intermediation and information intermediation are the two most basic functions of commercial banks as financial intermediaries, and risk sharing, liquidity and information have become the most important services of banks. The emergence and rise of Internet finance commercial banks traditional financial intermediary theory of the existence of the foundation has formed a strong challenge, specifically can be analyzed from three aspects:\x0d\first, Internet finance to reduce market transaction costs. Although direct financing by banks and indirect financing by stock and bond markets play an important role in promoting resource allocation and economic growth, they also generate significant market transaction costs, including the cost of collecting loan information, the cost of contracting between banks and customers, the cost of evaluating the credit rating of customers, the cost of post-loan risk management, and the cost of dealing with bad debts. This can be reflected in the high profits of banks and brokerage firms, such as according to the 2012 third quarter report, 2,471 listed companies in January-September of the realization of net profit of 1.49 trillion, of which 16 listed banks will be as high as 812.767 billion yuan, accounting for 54.5%. \x0d\ under the Internet financial model, the supply and demand side of the funds to run completely dependent on the Internet and mobile communication networks to contact and communicate, and can realize multi-party to multi-party transactions at the same time, the evaluation of customer credit rating and risk management is also mainly through data analysis to complete the transaction between the two sides in the cost of information collection, the borrower and lender credit rating evaluation costs, the cost of bilateral contracting as well as the cost of risk management after the loan, etc. Minimal. \x0d\ Secondly, Internet finance reduces information asymmetry. Information asymmetry is one of the important foundations for the existence of commercial banks. Under the Internet finance model, there is full communication of information between the two parties to the transaction, transparency of the transaction, complete marketization of pricing, and complete dataization of risk management and trust rating. For example, a Shanghai customer needs to apply for a consumer loan with a loan tenure of 12 months and an amount of 100,000 RMB. When financing through Rong360's professional loan search platform, he can choose among 27 loan products offered by 10 commercial banks as well as 9 non-banking financial institutions, and each of them has unique product features. \x0d\Re-example, when the Zopa platform undertakes the function of intermediary for funds lending, it firstly assigns a risk rating to the borrower with reference to that borrower's credit score with Equifax credit rating agency; secondly, it enters the borrower's family situation, purpose of the borrowing, the amount borrowed, the maximum borrowing interest rate that the borrower is willing to pay and the credit rating, and arranges for the borrower to be placed into the appropriate level of the segment; and lastly. Lenders with specific credit ratings refer to the borrower's credit rating and, in conjunction with the term of the loan, participate in a bidding process with their own lending rates, with the lower rate winning. \x0d\ Third, Internet finance accelerates financial disintermediation. The emergence and rise of a large number of third-party payment organizations in Internet finance has greatly accelerated financial disintermediation. In the traditional payment industry chain, e-commerce, third-party payment companies and banks play their respective roles: e-commerce to provide users with online trading platforms; third-party payments to establish gateway service platforms to realize online payments between consumers, merchants, financial institutions, and to provide cash flow, funds clearing services; banks are the final funds settlement service providers. \x0d\but with the development and growth of third-party payment organizations, they are no longer satisfied with just being a gateway payment platform for banks, but with the advantage of their data and information accumulation and mining, they have begun to expand directly into supply chain financing, small and micro-enterprise credit financing and other areas. Although the current Internet finance credit business derived from third-party payment accounted for a relatively small, but because it provides a direct link between the lending and borrowing of funds between the two sides of the channel, become an important direction of the strategic and business transformation of commercial banks.