What is the reason for the impact of Yu’e Bao on my country’s bank interest rate reform?

The impact of the emergence of Yu'e Bao on the development of the financial industry:

(1) Promoting the marketization of interest rates

Currently, the marketization of loan interest rates has been realized. However, the marketization of deposit interest rates is the most difficult environment in the reform. Because the difference between deposits and loans is an important part of bank profits, the marketization of deposit interest rates will fundamentally shake the bank's profit model. However, the emergence of Internet finance has provided investors with a variety of financial products and services to choose from, exerting a "catfish effect" and forcing the process of marketization of deposit interest rates. Under the influence of Yu'e Bao, major banks have also launched "baby" products, such as China CITIC Bank's Xinjinbao, China Merchants Bank's Chaochaoying

Yingbao, Bank of China's Current Bao, Minsheng Bank's Ruyibao etc. The emergence of these bank financial products has essentially started the pace of reform in the marketization of deposit interest rates.

(2) Achieving inclusive finance

Inclusive finance means that the financial service system benefits enterprises and people at all levels, especially in the traditional financial system Small and micro enterprises and low-income groups who have difficulty accessing financial services. Due to the requirements of their business operations, banks are forced to invest their resources in the most profitable part. As a result, their main business targets are large enterprises, and it is impossible to truly serve small and micro enterprises and ordinary people. Internet finance solves this problem through convenient online platforms.

Internet finance, through its technological and customer advantages, has lowered the financial entry threshold and increased the public's enthusiasm for participation in financial investment. It is a useful supplement to traditional finance.

(3) Expanding the boundaries of financial transactions

With its network platform, Internet finance breaks geographical restrictions, has the characteristics of wide coverage and equal opportunities, and improves the efficiency of resource allocation. Models such as P2P online lending and crowdfunding make one-to-one resource allocation possible, which traditional finance cannot achieve.