What is the impact of Internet finance on traditional finance?

(1) opened up new financing channels. Whether it is a payment channel or a credit channel, Internet finance has made a strong supplement to the traditional financial industry. In addition, in the sale of some traditional financial products, such as financial products, insurance products, etc., Internet finance, through in-depth cooperation with e-commerce platforms, has made the sales of these traditional financial products more diversified and the sales channels more extensive.

(2) Improve the informationization level of the financial industry. The emergence of the Internet is a good supplement to the original financial system. Through the application of the Internet, it can make the collection of financial information more convenient and fast, and a large amount of data can be collected in a short time. These financial data not only provide a basis for risk credit assessment, but also provide an important reference for financial institutions to establish a personal credit system.

(3) Promote innovation and change in the financial industry. With the introduction of Internet technology, the cost of financial activities has become lower both in terms of information collection and information dissemination, which is very helpful in alleviating the asymmetry of financial information between financial institutions and individuals.

What is the definition of Internet finance?

Internet finance, abbreviated as ITFIN, is a kind of cooperation between financial institutions and Internet companies, which accomplishes fund financing, investment, payment and financial information intermediary services through information, communication and the Internet, and it is an emerging financial model in China's financial market.