the rising of internet finance has brought opportunities and challenges to traditional commercial banks in China, which has affected the management of commercial banks from the aspects of service quality and efficiency, internal processes, organizational structure, talent team building, risk management control, product development and design, etc.

the development of internet finance is a historical necessity, and it is also the starting point of new logic in the future, and the beginning of the revolutionary impact of brand-new information and communication technologies on finance in the new stage. Under this background, only by embracing the Internet actively, making full use of the advanced means and tools of the new round of high-tech revolution and accelerating innovation and reform can commercial banks continuously enhance their own capabilities, strengthen risk management and control, market competitiveness and value creativity, realize the integration of commercial banks and Internet finance, and create a new pattern of healthy financial development in China.

1. Impact on service quality and efficiency

Service is the core content for banks to participate in market competition. In the process of disintermediation of the Internet, the relationship between users and banks, the channels of interaction and the core of "service" all have new extensions and connotations.

1. Promote the change of service consciousness. With the further development of market economy and the intensification of competition in the same industry, many banks' service measures are still rigid and passive, and they lack initiative in developing and maintaining non-core customers to some extent. At the same time, a large number of internet companies set foot in the financial industry. First, they pursued the improvement of user experience unremittingly, which led to the improvement of the overall level of financial services. The second is to take advantage of the scale advantage brought by the Internet user base, greatly reduce the cost of financial services, and even a large number of free services appear. Therefore, commercial banks will face competition from peers and Internet companies at the same time. Under the huge competitive pressure, the service consciousness and service mode of banks have undergone fundamental changes, and they have begun to win customers with intelligent, professional, characteristic and leisure services, win customers with convenient user experience, strive to maintain and consolidate existing customer resources, and tap and develop non-core customers that were not valued in the past.

2. The depth and breadth of services have increased. The development of Internet finance has given birth to a variety of convergence needs, and financial users have begun to hope to obtain more comprehensive and in-depth services. For example, customized personal services, which were originally based on counters, personal banks and personal butlers, borrowed the Internet to enter the community and mentioned online. However, enterprise users are not satisfied with the original investment and financing services based on local banks, and aim at a broader supply chain system, hoping that banks can provide cross-regional, cross-industry and integrated supply chain financial services including credit information consultation, transaction matching. This new demand has spawned a number of cross-border enterprises based on the Internet, which are rapidly seizing emerging markets with the unique innovation and execution of the Internet industry. Under the pressure of users and competitors, traditional banks must broaden the breadth and depth of their original services to adapt to the strong impact of the Internet tide.

3. service mode changes. Internet technology can make some traditional counter businesses realize remote transactions, and the counter staff of banks can break away from the shackles of physical outlets, borrow professional Internet terminal equipment and enter the community, bringing convenient professional and intelligent services to users. For example, the community financial service station of Minsheng Bank can provide a series of community financial services for community residents, such as remote card opening, remote mobile banking and online banking, and also launch a "co-branded IC card" integrating the functions of bank debit card, community access card, payment card and parking card, and set up a remote video teller machine (VTM equipment), which can provide customers with self-service services such as purchasing wealth management products, trust and insurance. Internet technology has made banks more flexible, proactive, humane and intelligent, which used to be like a "squatting" service mode.

second, the impact on internal process management

process is the foundation to ensure the normal operation of banks and prevent risks. In the past, commercial banks mainly considered ensuring controllable risks and clear responsibilities when designing processes, and often took the principle of "due diligence and exemption" as their implementation. The pressure of market competition in the Internet era forces banks to re-examine and adjust their original internal management and workflow. The main performance is: risk is still the first factor, but under the premise of risk control, streamline procedures as much as possible to improve efficiency and take it as an important means to win customers. "Duty-free" is no longer a negative way of working, but a means to protect innovation by using process system. At the same time, under the new way of thinking and work rhythm in the Internet era, the pace of process formulation is accelerated and the change cycle is shortened. After the initial formulation, the processes and systems need to be constantly supplemented and revised to keep up with the iterative upgrade of Internet products.

Third, the impact on organizational structure

In response to the impact of Internet finance, commercial banks have successively carried out centralized and professional reform and adjustment of their internal organizational structures, established independent or semi-independent specialized institutions with clear goals, clear boundaries and equal responsibilities and rights, integrated superior resources and focused on target areas to carry out special research, turned the challenges of Internet finance into opportunities, and promoted the transformation and development of enterprises.

The adjustment of organizational structure of banks mainly includes three categories:

1. Set up special departments dedicated to the development of Internet finance. For example, Bank of China has set up an innovation R&D department, Industrial and Commercial Bank of China, China Construction Bank, Huaxia Bank, China Everbright Bank and Shanghai Pudong Development Bank have successively set up e-banking departments, and Industrial and Commercial Bank of China has also set up an Internet finance marketing center. These departments are independent of traditional business departments and, with the cooperation of other departments, rationally allocate internal resources to lead the development and innovation of Internet finance business in the whole bank.

2. Establish targeted business divisions and subsidiaries. For example, Ping An Bank set up the company's online finance division, focusing on the development of online financial products. Minsheng Bank has set up a secondary department of direct banking, and its business development is not based on counters, breaking the time and space restrictions, mainly marketing financial products and providing financial services through e-banking channels.

3. Set up a special group or project group. This kind of project team has clear objectives, definite time, flexible resource allocation, can efficiently complete the development and design of a product or service, can meet the requirements of high timeliness of Internet products and services, and can coexist with various departments, business divisions and subsidiaries to form a matrix organizational structure, taking into account the overall development of short-term research and long-term strategy of banks.

Fourth, the impact on the construction of talent team

In the Internet age, due to the introduction of brand-new knowledge and technology and the expansion of related thinking systems and business fields, the fields of attracting talents by commercial banks have been broadened, and they are no longer limited to pan-financial fields such as finance, accounting and marketing, but also need all kinds of information technology, e-commerce, self-media management, Internet marketing and other life and entertainment application development and operation talents, especially a large number of people who know well. For example, in 214, Shanghai Bank recruited 1 cross-border talents as account managers, aiming to fully tap its professional advantages, effectively connect with financial business and expand industry customers. The recruitment of cross-border talents will bring brand-new knowledge, technology and new business to banks, and will have an impact on their thinking mode and corporate culture, which will eventually be transformed into productivity to promote the development of banks.

In addition, the rigid and stylized working mode of traditional banks suppresses the enthusiasm of innovative talents, and makes financial practitioners at all levels flow to more innovative Internet financial enterprises. Therefore, banks need to examine their own shortcomings in talent construction, change their business thinking, establish and improve financial innovation mechanism, talent training and incentive mechanism with a strategic vision of development, and enhance their attraction to talents.

v. impact on risk management and control of commercial banks

risk management and control is related to the survival and development of banks, as well as the stable development of financial markets and national macro-economy. In the development process of internet finance, the task of risk management and control is more complicated and arduous, which is mainly manifested in the following three aspects:

1. The types of risks are increasing. With the extensive application of Internet technology and the emergence of Internet-based business and business model innovations, the types of risks faced by the banking industry not only include traditional banking risks, but also include other new risks that need to be paid attention to because of the technicality, innovation and trial and error of Internet finance itself. Among them, the following risks need special attention.

first, legal/regulatory risks, which are derived from the exploratory nature of business innovation. Due to the blank of external regulatory policies, some business innovations operate in a grey area with no rules to follow. After the relevant laws and regulatory policies are supplemented, some non-standard business models will be adjusted at a great cost, or even stopped by regulatory agencies.

the second is technical risk, which comes from the higher requirements of IT operation and maintenance due to the improvement of bank productivity. Due to the convenience and popularity of the Internet, the transaction volume of banking business has rapidly increased by an order of magnitude, and the technical operation and maintenance can't keep up, which will have a huge impact on the operation of banks.

the third is information security risk, which is the risk generated in the process of information circulation. Internet has greatly improved the breadth and depth of information circulation, and users' personal information, account information, transaction information and various internal information of banks are at risk of being leaked.

the fourth is the publicity/public relations risk, which comes from the rapid development of social networks. Due to the rapid expansion of the speed and breadth of information dissemination, once a bank has negative information in terms of operation, risk and reputation, it will have a huge negative impact, not only affecting its own development, but also endangering the stability of social and economic order.

2. The response time of risk response is shortened. Internet improves the efficiency of information dissemination, and also enhances the influence and destructive power of risk events. With the introduction of Internet technology, the service period of banks has developed in the direction of 7×24 hours, and financial transactions may occur at all times, which shortens the "safe" time limit for bankers to deal with risk events. Only by establishing a quick and effective risk prevention, early warning and handling mechanism can the possible impact of risks be minimized.

3. Changes in risk management and control system. New risk forms have spawned a large number of brand-new risk management and control systems. The risk control mode of individual enterprises has been unable to adapt to the risk challenges brought by the Internet era. Banks must fully cooperate with their peers and other related industries to resist the risk impact brought by the Internet. In addition, the development of Internet technology provides brand-new tools and methods for risk management and control.

For example, CFCA (China Financial Certification Center) has established the "CFCA Transaction Monitoring and Anti-fraud System". By collecting massive transaction data for "big data" analysis, it has established and enriched the fraud rule base, which can analyze the transaction data in real time and give effective early warning and disposal suggestions. This kind of risk management and control method based on "big data" has changed the risk control mode in the traditional banking system, which mainly relies on the experience of risk control personnel and physical mortgage, and changed the experience-led to data-driven, from entity voucher confirmation to model calculation and prediction, which improved the objectivity and scientificity of risk management and control, saved labor costs and improved time efficiency.

VI. Impact on product development and design

1. Changes in design methods. Under the influence of Internet finance, the traditional fund-raising channels, financing methods and credit evaluation methods have been gradually changed, and banks have shifted from paying attention to the scale effect of funds to the scale effect of demand. At the same time, the pressure of market competition urges traditional commercial banks to change their product design methods to meet the market demand and the new rules of Internet e-commerce, mainly including the following six changes: based on big data, dividing customer groups, mastering customer mobility laws and demand positioning, creating personalized and differentiated products, and improving customers' perception and recognition of products; Carry out product and service innovation, consolidate existing customer groups and explore potential customer resources, such as attaching importance to product development with "long tail" attribute, giving play to "long tail" effect and improving market share; Pay attention to the convenience of products and improve the rate of return of users' funds. For example, some wealth management products reduce the minimum purchase and redemption restrictions while improving the rate of return of users, improve the turnover efficiency of funds and improve the market competitiveness; Carry out cross-border integration of service functions and develop comprehensive service products; Reduce product transaction costs, simplify service processes, and enhance product inclusiveness; Give full play to its own advantages and use technologies such as the Internet and big data to improve the risk prevention capability of products.

2. the product structure is simplified. When selling financial products or providing services on the Internet, the customers are mainly a large number of individual customers and a few enterprise customers, so the products need to meet the characteristics of timeliness, simplicity, quickness and easy understanding, which requires commercial banks to design products without too complicated product structure, easy risk identification and convenient and safe trading methods, so as to achieve the effect of obtaining customers and trading in large quantities through the Internet.

3. product types are enriched. The development of internet finance has enriched the product types of commercial banks. First, some traditional businesses of banks have been moved to the Internet, and online and offline services have been launched with the help of the bank's own brand, credit and capital advantages. The second is to integrate financial resources to produce brand-new products. For example, Minsheng Bank launched direct banking through websites, mobile apps and WeChat banks, creating a product system integrating deposits, wealth management, funds, precious metals and loans. Third, cross-border cooperation produces new products in cross-cutting fields. In recent years, banks have launched in-depth cooperation with Internet platforms, and developed e-commerce platforms (major large commercial banks such as China Construction Bank, Industrial and Commercial Bank of China and China Merchants Bank, as well as small and medium-sized banks such as Chengdu Bank and Shanghai Rural Commercial Bank, all of which have opened online shopping malls) and social platform financial services (such as WeChat Bank and Weibo Bank, And micro-financing, micro-finance and other services), mobile finance (such as all kinds of mobile financial apps that integrate financial services, consumption, entertainment and other scenarios, as well as mobile phone near-field mobile payment products and services based on NFC-SIM card mode in cooperation with mobile operators).

4. The product design cycle is shortened. Faced with the innovation and high efficiency of Internet finance, the upgrading of products is accelerated, and the market competition is intensified. Banks begin to improve the speed and efficiency of innovation, seize market opportunities, set up a higher risk tolerance and rapid compensation mechanism, shorten the product development and innovation cycle and launch products quickly under the risk control.

5. The evaluation method of product effect has changed. In the development of Internet finance, consumers' needs are more personalized and complicated. The evaluation methods of products developed and designed by banks are also more diverse: first, the customer-obtaining effect of products; Second, the reduction of transaction costs; The third is whether the probability of risk generation is within the risk tolerance; Fourth, whether the transaction process is fast and simple; Fifth, whether to cross-border combine with other consumption fields to acquire potential consumers and meet customers' diversified consumption needs.

In addition, in the Internet economy environment, the evaluation of product effect is no longer limited to post-event analysis. The development of information technology, the rapid change of market business opportunities and the rapid update iteration of products force banks to pay attention to product effect in real time, do a good job in real-time tracking, information collection and feedback, and guide the optimization of subsequent products simultaneously. At the same time, the design of products and services should be based on the financial essence, and more attention should be paid to the optimal allocation of financial resources in the process of profit-seeking. Therefore, the effect evaluation of bank products is a systematic and long-term process, including not only the effect evaluation of a certain product, but also the related follow-up services and related services.