Research on Theory and Practice of Commercial Banks' Internet Banking-Based Business Innovation

Internet banking, as a product of the combination of financial and technological innovation, heralds both a new organizational form and a new business pattern of the banking industry. Conducting innovations in Internet banking services, commercial banks attempt to slice operational costs and boost banking functions to increase their value. Starting from commercial banks' realization of innovation in financial services through developing their Internet banking, this paper explains from different perspectives the function of Internet banking to increase the value of commercial banks with the theory of increasing marginal utility, the externality theory, the theory of value chain, and the theory of value engineering, analyzes the Internet banking services' practical value-adding process through its modes of operation and specific services, and reaches the conclusion from the case analysis of CCB's Internet banking services.