Research on Sustainable Development Strategy of Commercial Banks under the Background of Internet Finance

With the advent and development of the information age, the Internet has become the current advancement in all walks of life. The popularization of e-commerce also gives birth to Internet finance. The emergence of consumer credit businesses such as "Yu 'ebao" and "Huabei" has put great pressure on the consumer credit business of traditional commercial Banks. Under the background of Internet finance, in order to promote the development of commercial Banks' consumer credit business, it is necessary to strengthen the innovation of commercial Banks' consumer credit business and meet the development demand of the current information age.

With the development of China's economy and society since the 21st century, the residents ' disposable income has increased dramatically, the demand for wealth preservation and appreciation has been constantly increasing, the scale of personal financial services of commercial banks has expanded, and the number of different types of personal financial products has increased. However, with the rapid development of this business, it also shows the shortcomings of high purchase threshold, high transaction cost and complex purchase procedures. The demand of small customers can not be effectively met, the development and popularization of Internet technology, in this context, Internet finance emerged at the historic moment. This paper combines qualitative and quantitative methods, based on the study of relevant literature, analyses the impact of Internet Finance on personal finance business of commercial banks, and puts forward relevant suggestions and opinions according to the analysis results. Firstly, this paper discusses the personal financial services ' development process, product types and characteristics, and theoretically analyses the impact of internal factors such as total assets scale and return on net assets on personal financial services of commercial banks. Then it analyses the Internet finance's definition, development status, competitive advantage and disadvantage, and the impact of various elements of Internet finance, such as the size of Internet financial users, the scale of third-party Internet payment, the Internet financial index and the annual return rate of Internet financial products. Then, 16 listed banks are selected as the research object, and the impact of each factor on the sales scale of individual financial business of commercial banks is empirically analyzed by using econometric regression model. The analysis results show that the scale of third -party Internet payment, the scale of Internet users and the increase of Internet financial index have optimistic influence on the personal financial services of commercial banks. The expansion of the scale of internal total assets and the decrease of the return on net assets will also have the positive impact on the personal financial services of banks, and the annual return on Internet financial products represented by Yu Ebao has formed a certain pressure on the commercial banks ' business, but at the same time, in the fierce market competition, it has brought opportunities for the transformation of commercial banks' personal financial services. Finally, based on the above analysis results, this paper puts forward some suggestions for the development of commercial banks ' personal financial services.

This study aims to examine and analyze the effect of risk variables, governance, financial performance, capital structure, asset structure, intermediation and human capital functions on the social performance of sharia commercial banks and conventional commercial banks as well as to test and analyze the influence of risk variables, governance, financial performance, capital structure, asset structure, intermediation functions and human capital towards social differences in performance between conventional and sharia commercial banks. The type of research used in this study is explanatory research, roomates explains the influence of independent variables on the dependent variable and comparative research, the which is research that is used to explain variables that influence the differences in social performance of Islamic banks and conventional commercial banks. The Populations in this study are commercial banks (conventional) and Islamic public banks in Indonesia. The purposive sampling technique was used to Obtain samples items, namely commercial banks (conventional) and sharia commercial banks in Indonesia to publish audited financial reports, annual reports and Reviews those that corporate social responsibility reports submitted between 2013 - 2017. Technical Data analysis used multiple regression and discriminant analysis. The analysis in this study tested the hypothesis. Multiple regression is used to analyze variables that Affect the social performance of conventional commercial banks and Islamic commercial banks. While discriminant analysis is used to analyze what variables influence the social performance of conventional public commercial banks and Islamic banks in Indonesia. Based on the results of the analysis and discussion concluded that (a) the variables of governance, capital structure, asset structure of human capital, risk, intermediation function and financial performance have no significant effect on the social performance of sharia commercial banks; (B) risk and financial performance variables have a significant effect on the social performance of conventional commercial banks. While the variables of governance, capital structure, asset structure of human capital, and intermediation function have no significant effect on the social performance of conventional commercial banks and (c) the variables of risk and financial performance have a significant effect on the performance of social Distinguishing between commercial Islamic banks and conventional commercial banks. While the variables of governance, capital structure, asset structure of human capital, and intermediation function do not Significantly influence between social performance of commercial Islamic banks and conventional commercial banks.

The paper examined the arguments and counterarguments within the scientific discussion on Financial Intermediation and the performance of Commercial banks in Nigeria. Despite a series of reforms and restructuring aimed at enhancing the bank’s ability to provide services effectively, establish branch networks and finance the real sector, there is still insufficient domestic credit to commercial real-estate banks, affecting the success of financial intermediation in the Nigerian commercial banking sector. The main purpose of this study is to examine the impact of financial intermediation on the performance of commercial banks in Nigeria. The data came from a statistical bulletin of the Central Bank of Nigeria. A systematic literary approach to data analysis is regression analysis. In Equation 1, it was found that there is a significant relationship between total lending and the commercial bank lending rate in Nigeria. In Equation 2, it was found that there is a significant relationship between the overall credit ratio and the cash reserve in the commercial banks of Nigeria. In the commercial bank performance equation, it was found that there is a significant relationship between the total assets and the capital involved by commercial banks in Nigeria. In the commercial bank performance equation, it was found that there was no significant relationship between the loan and deposit ratio and the liquidity ratio in the commercial banks of Nigeria. It has also been found in Commercial Banking Performance Equation 5 that there is a significant relationship between gross domestic product and total credit in the commercial banks of Nigeria. Thus, the study authors recommend reducing the commercial bank loan rate so that investors see commercial banks as the number one source of funding, the Central Bank of Nigeria should increase the commercial banks’ minimum reserve in order to facilitate adequate lending to commercial customers by clients/investors. Commercial banks need to make effective use of the capital used to increase profitability. Commercial banks should help increase liquidity to increase their ability to cover customer withdrawals and increase loans and advances to customers. Commercial banks should allocate proper credit to the real sector for productive purposes in order to increase gross domestic product. Keywords: Financial Intermediation, Commercial Banks, Gross Domestic Product, Commercial Bank Credit.

With the continuous development of social economy, the business in the field of finance on the Internet is also developing, which is greatly changing the traditional financial system in China. Internet finance has also once become a buzzword in the field of finance. on the one hand, this phenomenon can facilitate the economic life of the nation. On the other hand, it also caused an impact on the traditional offline financial business, especially commercial banks, etc., The commercial banks have urgent need to change the traditional marketing strategy. This paper suggests a new marketing strategy for commercial banks that is in line with the new online environment. Also, this paper analyzes commercial banks from the financial direction and discusses their marketing strategies in the new online environment.

Technological innovations in the aspect of electronic banking (e-banking) have progressively advanced and changed the manner in which banks offer services. The use of varied forms of technological innovations has become a key strategy that influences the competitiveness and performance of commercial banks. Subsequently, banks are investing more in adopting and implementing innovative e-banking strategies. Although numerous studies have inspected the effect of e-banking on banks across the world, the knowledge gap is that few studies have examined the impact of e-banking strategies on commercial banks’ performance in Kenya. The objectives of this study were to predict the impact of agency banking, mobile banking, the use of ATMs, and internet banking on the commercial banks’ financial performance in Kenya. Agency theory, contingency theory, diffusion of innovations theory, and technology acceptance theory formed the theoretical basis of this study. In its research design, the study used the descriptive approach. The target population comprised managers of 40 commercial banks and the study utilized the purposive sampling method to select 100 respondents comprising of 40 senior managers and 60 operations managers. Descriptive statistics, correlation, and regression analysis were used to analyze data. Correlation analysis indicated that mobile banking (r = 806, p = 0.000), agency banking (r = 0.737, p = 0.000), internet banking (r = 0.466, p = 0.000), and ATM banking (r = 0.547, p = 0.000) have statistically significant relationships with the commercial banks’ performance. Findings indicate that e-banking accounts for 71% (R2 = 0.710) of the variation in the commercial banks’ performance. Moreover, the study found out that e-banking strategies of agency banking and mobile banking are statistically significant predictors (p<0.01, while internet banking and ATM banking are statistically insignificant predictors (p>0.01). Based on these findings, the study concludes that rely on e-banking strategies in enhancing their performance, particularly mobile banking and agency banking. Furthermore, the study concludes that ATM banking and internet banking contribute minimally to the commercial banks’ performance in Kenya. Thus, the study recommends banks to optimize mobile banking and agency banking because they are statistically significant predictors while increasing awareness of internet banking and addressing insecurity issues of ATM banking. Thus, further research should consider establishing factors that account for the unexplained variances of 29% in the performance of commercial banks.

This study aims at examining the impact of capital adequacy and bank operating efficiency on financial performance of Nepalese commercial banks. For the purpose of this study, the secondary data have been used. The dependent variables are return on assets and return on equity while the independent variables are loan ratio, bank operating efficiency, total deposit, loan loss provision/total loans, loan loss provision/equity, core capital, risk based capital and total capital ratio. The data are collected from the Banking and Financial Statistics, Bank Supervision Report published by Nepal Rastra bank and annual reports of selected banks for the period of 2005/6 to 2012/13. The regression models are applied to test the significance and importance of capital adequacy of commercial and development banks. The result shows that total deposits to total asset and banks operating efficiency are the major variables determinant of financial performance of commercial banks in Nepal. Bank operating efficiency, loan ratio, total deposit to total assets, loan loss provision to total equity have significantly positive impact on financial performance of commercial banks. Loan loss provision to total loan, core capital ratio, risk weighted ratio, total capital ratio have negative impact on financial performance of Nepalese commercial banks.

The performance of commercial banks in Kenya determines the financial position of the nation. This performance, over the past period, has not been inspiring and various reforms have been put in place in to increase it. Yet, performance of commercial banks on average has been erratic. The business environment in which the commercial banks function is turbulent, and it is through understanding the environmental forces, that they can improve their performance. The study’s general objective involved finding out the impact of environment factors on Commercial bank’s Performance. Specifically, the study focused on the following objectives; to find out the influence of the organizational resources on the performance of the commercial banks in Kenya; to determine how organizational structure influences the performance of commercial banks in Kenya; to establish the influence of competition on the performance of the commercial banks in Kenya; and to establish the moderating effect of government policies on the influence of environmental factors on performance of commercial banks in Kenya. The contingency theory, resource based view and the theory of competitive advantage informed this study. The research employed a descriptive research design. The population of this study comprised of the 43 commercial banks operating in Kenya. The study targeted the head office of each of the commercial banks and the respondents were the marketing managers. A pilot study was conducted using customer experience executives of four commercial banks. The study conducted a census of the 43 head marketing managers of the financial Institutions in Kenya. The study used structured questionnaires to collect data. The study used face, content and construct validity and reliability was measured using the Cronbach’s Alpha coefficient. Analyzing of data was done through descriptive and inferential statistics using the SPSS software. The findings were presented using charts, tables, and graphs. The study concludes that organizational resources had significant influence on performance with and without government policies. Organizational structure had a great impact on commercial banks performance. Competition had significant influence on performance of commercial banks with or without the moderating influence of government policies. The government policy had significant moderating influence in the relationship between environmental factors and performance of commercial banks. The research recommends that the top management team of all commercial banks operating in Kenya should improve on their organizational resources by ensuring adequate number of employees is in place in various departments and functions. The management of all firms in the financial sector in Kenya should improve on their structures by engaging subordinate staff in decision making on daily operations of the firm. The management team of all commercial banks should come up with better strategies of remaining competitive in the industry in view of other industry participants with similar product offering like other banks, microfinance institutions and SACCOs. The Central Bank of Kenya should increase its supervisory and monitoring role among commercial banks to positively influence their performance. There is need for strong market intelligence to collect information on products and services of competitors for constant improvement and thus performance among commercial banks.

The study's overarching goal looked at the impact of Kenyan commercial banks' digitization policies on their performance. The financial industry has been undergoing technological advancements which effectively hinders their ability to cope with market forces which threaten their profitability and growth, financial inclusivity, competitiveness and survival. Kenyan commercial banks are in the process of executing various digitization strategies to enable them fight against increased competition and new market demands hence each individual bank has to provide services that meets these needs. The study provides an analysis and evaluation of the influence of education level on performance, influence of cost of services on performance, the influence of users’ age and gender on performance and to establish the effect of customers’ security concerns on performance of commercial banks in Kenya. The data was examined using descriptive statistics, and the connection between the independent variables of education, age, cost, and security concerns and the dependent variable of success assessed using linear regression analysis. For ease of comprehension, data was presented as frequency tables, bar graphs, and pie charts. According to the findings, cost and security concerns was an important factor with a substantial impact and positive influence on digitization strategies that influence performance of commercial banks in Kenya. Moreover, the findings revealed that education, age and gender of customers did not have a tremendous impact on the performance of Kenyan commercial banks though adoption of digitization. This was evident from the results showing that both male and female customers from all ages are well educated to understand the convenience of digital banking and prefer using digital platforms to transact. The study concluded that through digitization strategies, education, age, gender, cost and security concerns enhanced performance in Kenyan commercial banks. The research revealed that commercial banks, through their leadership, appreciate digitization strategies to boost performance through adoption of cost effective and secure platforms that target banking products targeting age and gender. The commercial banks should ensure that their digital platforms are well secured, cost effective and well marketed to their customers of all ages who clearly understand the importance of these platforms.

Impact of internet finance on the performance of commercial banks in China

Over the recent years, competition in the Kenyan banking industry has increased, resulting to various banks adapting key practices to increase their competitive advantage. Hence, this research focused on the competitive advantage practices and performance of commercial banks, in Nairobi County Kenya; a case of Equity Bank, Kenya Commercial Bank, Absa and Family Bank. Over the recent past, the performance of commercial banks has been influenced by different factors such as liquidity, capital inadequacy and the efficiency of operational costs. The study’s objective was; to find out how differentiation strategy, innovation, focus strategy and cost leadership. Some of the theories applied include porters five forces, resource-based view, stakeholder, and balanced scorecard model. The research applied a case study method, with detailed questionnaires which examines the respondents on practices used by Commercial banks in Nairobi County. Also, it examined on how such practices enhance performance in the county. The summary of the regression model correlation coefficient explains the interdependence between the independent variables, differentiation, focus strategy, cost leadership, innovation and the dependent variable, which is performance. Key respondents of this study were employees and customers of the sampled Commercial banks in Nairobi County, with a focus of Branch managers, regional managers and departmental managers. Data was collected using questionnaires, with open ended questions. Reliability test was undertaken, and analysis done through multiple regression and inferential statistics. The expected outcome is that the four main practices would become useful to Equity Bank management, future researchers, and the government. The study concluded that commercial banks use differentiation strategy to provide customers with something unique, different and distinct from items their competitors may offer in the marketplace. Innovation plays a key role in introducing novelty to existing product lines or processes, leading to increased market share, revenue, and customer satisfaction. Focus strategy identifies the market segments where the bank can compete effectively. Implementing Cost Leadership Strategy creates a different market size for each product and each industry. The study recommended that the commercial banks need to produce or design extremely unique or distinctive products or services that create increased value for the consumer. Commercial banks should ensure that they truly understand their customers’ needs; establish collaborative relationships with their business partners, allocate resources for training and development etc. The commercial banks should use customer satisfaction ratings from past months what led to high scores, and what could use improvement to develop a proper focus strategy and also consider the demographics of their current clientele.

This study aimed to determine strategic agility impact on employees’ performance in commercial banks in Jordan. A self-administrated questionnaire was developed according to research objective and hypotheses. The research population consisted of all managerial employees in Jordanian commercial banks. A random sample was selected consisting of 250 staff members who have senior administrative and supervisory positions in the commercial banks. Statistical techniques were used to test the research hypotheses. The research concluded a set of outcomes, the most important is strategic agility with its dimensions have an impact on employee performance in the commercial banks in Jordan. The research also concluded that strategic agility dimensions (strategic sensitivity, core capabilities, clarity of vision, strategic goals information technology selection, and share responsibility) influence on employee's performance in commercial banks in Jordan. The study recommended that commercial banks in Jordan have to adopt strategic agility approach to improve their employee's performance. The commercial banks must exert their best efforts to rapidly adapt to surrounding environmental variables. Commercial banks have to pay attention to human capital, which plays a major role in achieving good performance.

Despite the recognition of the important role that human resource practices play in enhancing employee performance, there is a lack of comprehensive research on the specific impact of these practices in the banking industry. The study aimed to investigate the relationship between strategic human resource practices and employee’s performance in the 38 commercial banks in Nairobi. The study specific objectives were to determine the effect of performance appraisal, employee training, employees’ involvement, employee motivation on employee performance in commercial banks in Nairobi. The study was guided by four theories; Harvard model, Goal setting theory, Human capital theory, technology acceptance model. The study adopted explanatory research design and probability sampling strategy. The study target population were 228 respondents comprising of 38 heads of human resources, 38 heads of operations, 38 heads of marketing and 38 heads of finance and 76 human resource managers in the 38 commercial banks in Nairobi County. The study employed primary data. The sample comprised of 145 respondents from the 38 commercial banks in Nairobi County. A 5-point Likert scale was used to measure employees’ performance in commercial banks. The study employed both descriptive and inferential statistics to analyze data. Findings indicated that performance appraisal, employee training and employee motivation significantly influence employee performance in commercial banks in Nairobi while employee involvement negatively and insignificantly influence employee performance. Thus, the study concluded that performance appraisal, employee training, employees’ motivation significantly influences employee performance in commercial banks in Nairobi. The study recommends that commercial banks in Nairobi prioritize and enhance their performance appraisal systems, training programs, and employee motivation strategies, as these practices have been shown to significantly boost employee performance. Banks should focus on regular and comprehensive performance appraisals that provide constructive feedback and recognize employee contributions, as well as invest in continuous training programs that equip employees with the necessary skills and knowledge to perform effectively.

Taking employee satisfaction as the mediating variable, this paper explored the relationship between promotion incentives, employee satisfaction and performance of Chinese commercial Banks by constructing a game model, and took 30 listed commercial banks from 2009 to 2018 as samples to empirically test the conclusions. Research shows that promotion incentive can significantly improve the performance of commercial Banks, and this incentive effect is more significant in state-owned commercial Banks. Further research shows that employee satisfaction plays a part in mediating between promotion incentive and performance of commercial Banks, that is, promotion incentive can improve performance of commercial Banks by improving employee satisfaction. The research conclusion enriches the research on the path of promotion incentive on the performance of commercial Banks and provides some inspirations for the design of incentive schemes for employees of commercial Banks.

With an upsurge of interest rate marketisation and internet finance, the role of commercial bank revenue in China's non-interest sector is turning more significant in terms of the bank's operating performance. From 2017 through 2021, the study explores the relationship between non-interest revenue and operating performance in business banks. Simultaneously, the article explores the various degrees of influence of three forms of non-interest revenue on operating performance and compares non-interest income variances on operating performance amongst banks with different equity natures. The empirical data show that non-interest income from commercial banks beneficially effects on their profitability; the proportion of fees and commissions contributes more to the profitability; and the impact on operating performance is more pronounced for state-controlled and joint-stock banks than for urban and agribusiness banks. As a consequence, commercial banks should pursue other businesses aggressively in order to diversify non-interest income sources and play a role in bank operations.