The Impact of Internet Finance on Commercial Banks' Personal Wealth Management

Abstract

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.