Reasons for the Rise of Internet Finance
First of all, the root cause of internet finance is the demand for financial services in the whole economy, including industries and consumers. In the whole process of economic development, the economic form is constantly evolving, consumers' demand for finance is constantly improving, and the existing financial system can't meet our growing and ever-changing demand for financial services, so Internet finance has room for development.
Second, the development of internet finance stems from the progress of technology. Whether it can meet the change of demand depends largely on technology. The platform of Internet technology is connected by several links. I sum it up as? Dayun translation? Namely big data, cloud computing, platforms and mobile intelligent terminals. These technologies are the fundamental conditions for the existence of Internet finance.
Third, innovation. When the demand and technology of the Internet develop to a certain extent, who will realize Internet financial services? This is the innovative spirit, innovative motivation and innovative concept of entrepreneurs. In addition to the innovative spirit of entrepreneurs, it also includes the innovation of management departments and governments. What is the innovation of government? Inclusion means giving financial space to the Internet and supporting its development, which is also an innovation of past government actions. In this sense, innovation also includes the understanding and support of all aspects of society, which is the result of joint innovation. Of course, the core is the innovation of entrepreneurs.
Internet financial operation is not standardized.
The first problem is that the propaganda is not standardized and misleading. Only disclose how high the rate of return is, but not how risky it is. Even if the risk is revealed, it is not displayed in a prominent position, which makes investors mistakenly think that this wealth management product has no possibility of losing money.
The second problem is operation. In the course of operation, some internet finance companies have adopted? Pool color? Operation mode. This operation mode is essentially an investment mode that does not distinguish between investors and debtors' funds, and this operation mode has been completely banned in standardized wealth management products.
The third question is a theoretical one. Theoretically speaking, when the scale of Internet finance enterprises is large, it will bring liquidity risk.
The Influence of Internet Finance on Traditional Finance
What traditional financial institutions do depends not only on their own reactions, but also on the regulatory space. And in lack? Catfish? At that time, it may be difficult to open the regulatory space by relying solely on traditional financial institutions themselves. So, for banks, what have these internet finance companies brought to regulators? Catfish effect? Not all negative effects, but to some extent, it has released the vitality and development space of banks. Obviously, banks have the largest amount of available data, and they are also one of the enterprises that introduced information technology and Internet technology earlier. The facts in the United States have proved that internet finance companies are not enough to become a huge competitive threat to banks.
More importantly, in the face of the crisis, many domestic banks quickly started the transformation and embraced the wave of new technologies with open arms. For example, some banks use big data technology to improve the accuracy of retail; For another example, some banks began to issue credit cards with the help of internet finance; For another example, some banks have started to set up their own internet finance departments or companies; For example, some banks directly carry out strategic cooperation with existing Internet finance companies. For traditional banks, such external stimulus is good for their own development. This positive response indicates that its future is even less likely to be subverted.