"Banks should make full use of their comprehensive advantages to provide a package of financial services, so the clients' money will stay with the banks. They should also apply Internet technologies, business philosophies and processes more often to traditional banking services and develop Internet finance led by banks," Lian said.

Many banks are setting up their own Internet finance companies or cooperating with other companies that specialize in this field.

Baoshang Bank Ltd, a joint-equity commercial bank best known for its micro-business finance service, launched an online wealth management platform called Xiaoma Bank in June, offering debt products and money-market funds.

Instead of assessing a client's risk profile at a bank outlet, Xiaoma Bank offers online risk tolerance assessments to its clients and recommends different portfolios of financial products to different clients according to their characteristics.

Industrial Bank Co Ltd, a listed bank based in East China's Fujian province, launched a direct bank in March, offering securities investment funds, money market funds, bank acceptance pledge financing and wealth management products online.

As of the end of November, its customers had exceeded 500,000 and assets reached more than 50 billion yuan.

Yang Zhong, general manager of the electronic banking department at Industrial Bank, said: "Whether or not a bank could ride the wave of Internet development and push forward reforms in a timely manner in terms of standardized financial products and services will decide whether it will succeed amid fierce competition."