Why are traditional banks investing in Internet finance?

In recent years, with the emergence of the "Internet +" craze, Internet finance has gradually created the "new normal" of China's economy, impacting everyone's daily life, and also changing various areas of the traditional financial industry. . This has also prompted many traditional institutions, including banks, to accelerate their deployment of Internet finance.

The essence of traditional commercial banks lies in deposits, loans, and remittances. For traditional banks, maintaining their market share in the lending field is a top priority. This is because 56% of the banking industry's profits come from lending and 7% from payments. Although online lending is not large in scale, accounting for only 1% of global loans, it is developing rapidly. Moreover, the wide scope and rapid deployment of Internet finance have also shocked the traditional banking industry. The catfish effect generated by Internet financial products represented by Yu'e Bao also stimulates traditional banks to reform themselves.

Specifically, in terms of deposits, deposits reached 2 trillion yuan in 2015, more than doubling the 900 billion yuan in 2014. Among them, Yu'e Bao's scale has tripled in two years, reaching 620.7 billion yuan, accounting for 9.5% of the increase in savings deposits in 2014 and 6.8% of the increase in savings deposits in 2015.

In terms of remittances, third-party payment has fully seized the position of banks. In 2015, third-party online payments exceeded 11.8 trillion yuan, and mobile payments exceeded 9.3 trillion yuan, accounting for 38% of the total bank card consumption in the system.

In terms of loans, the transaction scale of P2P online loans exceeded 1 trillion yuan in 2015, accounting for 35.6% of the annual increase in loans to small and micro enterprises in the banking system.

Because of this, the traditional banking industry has also begun to make arrangements for Internet finance.