Why does Internet finance have an impact on commercial banks?

At present, with the help of their innate advantages, Internet companies are widely and rapidly deployed in financial fields such as payment, settlement and financing, gradually changing the pattern of bank-specific funds, and impacting the traditional finance dominated by commercial banks with irreversible erosion, which has a subversive, systematic, comprehensive and sustained impact on the core business and profitability of traditional banks.

Internet finance impacts the payment intermediary of commercial banks.

Theoretically speaking, financial disintermediation breeds Internet finance to participate in financial market competition, and the innovation of Internet finance conforms to the general trend and internal logic of financial disintermediation. As one of the three core businesses of traditional banks, payment and settlement intermediary business is facing all-round challenges from internet finance, which is mainly manifested in the fact that internet finance is separated from the intermediary of traditional financial institutions, the supply and demand sides of funds directly trade, and funds circulate outside traditional banks. With the active trading of the third-party payment platform on the Internet, the scale of online payment based on personal communication equipment transmitting monetary value settlement through wired or wireless communication technology has exploded, and the Internet payment system directly occupies the bank payment system platform, subverting the long-term payment intermediary position of commercial banks.

Internet finance impacts the financing mode of commercial banks.

On the one hand, online financing platforms use search engines to concentrate customers, which weakens the customer development momentum that impacts traditional banks. With the help of big data mining, analysis and application technology, the Internet financing platform integrates the e-commerce financing platform and P2P financing service platform built by external resources, accurately locks and subdivides the target customer base, reduces customer development costs, and impacts the traditional fragmented marketing model of banks. On the other hand, the online financing platform matches the transaction with the market value, which reduces the resource allocation power of traditional banks. According to the customer's financing amount, interest rate and term, the online financing platform follows the market mechanism of matching transactions, and realizes a batch and professional one-to-many and many-to-one financial lending combination mode through online or offline combination, which meets the customer's life-cycle financial service needs, especially small and micro enterprises at different growth stages, and improves the efficiency of fund matching. Internet companies do not rely on physical platforms to conduct pure customer concentration and matchmaking transactions, which is an erosion activity that breaks away from the intermediary of traditional financial banks and impacts the traditional financing pattern dominated by commercial banks.

Internet finance impacts the customer channels of commercial banks.

The data accessed by Internet users are processed by customer behavior analysis, target customer screening and data mining. , search customers' financial needs, make the target customer orientation more accurate and the market management more refined. In terms of product marketing, Internet finance enterprises have a variety of financial products and display platforms, which support financial consumption to create experience value through interaction with financial consumers, and accelerate the customer diversion of traditional bank physical marketing channels through multi-layer distribution channels.

Objectively, the industry standard and industrial pattern of Internet finance have not yet been formed, but the substitution effect of various forms of Internet finance on the traditional financial model has gradually emerged, and its erosion situation has triggered the "domino effect" of the banking industry; In the short term, changes in the new forces of Internet finance will not subvert the traditional banking industry. In the long run, with the increasing scale of mobile Internet transactions and the increasingly strict supervision, Internet financial forces will gradually improve the two core functions of banks, namely, credit creation and financing services, thus having a fundamental and profound impact on the traditional banking industry.