The Mechanism of Internet Finance on the Assets and Business of Commercial Banks in China

Internet finance has structural impact and market impact on commercial banking. Various forms of Internet finance such as third-party payment, crowdfunding, P2P lending, and internet money funds have emerged. Due to their low cost, high efficiency, and diversification characteristics, an increasing number of people are utilizing Internet finance for their businesses. This trend significantly affects traditional commercial banking operations and presents challenges. In order to gain competitive advantages through Internet finance, this paper explores how commercial banks can leverage their traditional business models. It introduces the concept, model, and characteristics of Internet finance; analyzes the importance of asset management for commercial banks; examines the influence of Internet on commercial bank’s asset management; finally proposes countermeasures for the development of Internet finance. It is advocated that commercial banks should actively explore the road of “structured finance” with all-round structural reform in the future.