What are the advantages of Internet financial platforms over banks

The advantages of Internet finance are:

The first advantage is the low transaction cost. Commercial banks are also now vigorously developing online banking, for a same business, online banking only one-tenth of the cost of the physical outlets, online banking on the replacement of the physical online store makes the operating costs significantly reduced. The essence of the financial industry is the service industry, in the market economy, the law of the development of the service industry is to continue to reduce transaction costs in the direction of development. Two years ago, everyone said that the banking industry profiteering, banking profiteering means what? It means that the banking industry provides customers with high service costs. The cost of the customer is the income of financial services organizations. From the law of competition in the market, the future development is certainly to the direction of lower transactions, and Internet finance represents this trend.

The second advantage is the expansion of the caliber of customer service, solving the problem of long-tail customers. Labor laws and do business with the dual requirements of the customer base so that traditional banks have business hours restrictions, customers go to the bank time presents a normal distribution, which time the highest concentration of customers, the bank will choose this time to operate, but some customers have different preferences or temporary needs, this kind of customers in the two sides of the normal distribution of customers can not enjoy the bank branch services. The Internet finance breaks a lot of time and space constraints, for consumers to greatly save time costs, can meet the financial needs of the "long tail" group has been neglected, greatly improving customer coverage.

The third advantage is the application of big data, which has its inherent advantages in solving the traditional risk management of banks. Banks are risky financial institutions, so the core competitiveness of banks lies in the ability to screen customers for risk management. Internet finance's powerful data collection, data analysis and behavioral tracking capabilities can go beyond general financial statements to effectively investigate and monitor customers' willingness and ability to repay, and effectively screen abnormal conditions, which technically solves the problem of asymmetric market information. Internet finance based on Internet data mining technology continues to innovate credit means to reduce transaction costs, improve transaction efficiency, and more importantly, can effectively control financial risks.

The above on "Internet finance compared with the bank, what are the advantages?" The specific introduction. Internet finance customers to small and medium-sized enterprises, covering part of the traditional financial industry, financial services blind spot, is conducive to enhancing the efficiency of resource allocation, and promote the development of the real economy.