Characteristics of Internet Finance

Internet finance is characterized by digitalization, networking and informatization of traditional finance. Internet finance is a more inclusive and popular financial model. Internet finance can improve the efficiency and reduce the cost of financial services.

Internet finance (ITFIN) refers to a new financial business model in which traditional financial institutions and Internet enterprises use Internet technology and information communication technology to realize financing, payment, investment and information intermediary services.

Internet finance is not a simple combination of the Internet and the financial industry, but a new model and new business that naturally comes into being to meet the new demand after being familiar with and accepted by users at the level of network technology such as security and mobile (especially the acceptance of e-commerce). It is an emerging field that combines traditional financial industry with Internet technology. On June 20/610/3, the General Office of the State Council issued the Notice on the Implementation Plan for Special Remediation of Internet Financial Risks.

Overall mode

At present, internet plus's financial structure consists of traditional financial institutions and non-financial institutions. Traditional financial institutions are mainly Internet innovation, e-commerce innovation and APP software of traditional financial services; Non-financial institutions mainly refer to e-commerce enterprises that use Internet technology for financial operations, P2P-based peer-to-peer lending platforms, crowdfunding-based online investment platforms, mobile phone wealth management apps (wealth management treasures) and third-party payment platforms.

Current situation of China

The reform of China's financial industry is a world-renowned event, especially the marketization of interest rate, exchange rate and financial supervision. Every important institutional change in the world's major economies is often accompanied by major financial innovations. China's financial reform coincides with the rise of Internet finance. Driven by the traditional financial sector and Internet finance, China's financial efficiency, transaction structure and even the overall financial structure will undergo profound changes.

Crowdfunding, that is, public fund-raising or public fund-raising, refers to the mode of raising project funds from netizens in the form of group purchase and pre-purchase. The original intention of crowdfunding is to use the characteristics of the Internet and SNS to let startups, artists or individuals show their ideas and projects to the public, win everyone's attention and support, and then get the needed financial assistance. The operation mode of crowdfunding platform is similar-individuals or teams who need funds hand over the project planning to crowdfunding platform, and after relevant review, they can set up their own pages on the platform's website to introduce the project to the public.