What are the advantages of Internet finance compared with the traditional financial industry

1, Internet finance (ITFIN) refers to the traditional financial institutions and Internet enterprises to use Internet technology and information and communication technology to achieve capital financing, payment, investment and information intermediary services, a new financial business model.

2, traditional finance, mainly refers to financial activities with only three traditional business of deposits, loans and settlements. Broadly speaking, life cycle costs also include the use costs and abandonment costs incurred by consumers after purchase. Simply put, finance is the financing of funds.

3, the advantages of Internet finance:

①Low cost

Internet financial model, the supply and demand of funds through the network platform to complete their own information screening, matching, pricing and trading, no traditional intermediary, no transaction costs, no monopoly profits. On the one hand, financial institutions can avoid the capital investment and operating costs of opening business outlets; on the other hand, consumers can quickly find financial products that suit them on an open and transparent platform, weakening the degree of information asymmetry and saving time and labor.

②High efficiency

Internet financial services are mainly handled by computers, the operation process is completely standardized, customers do not need to wait in line, the business processing speed is faster, the user experience is better. Such as Ali microfinance relying on the credit database accumulated by the e-commerce, after data mining and analysis, the introduction of risk analysis and credit investigation model, merchants from the application for loans to issue only a few seconds, a daily average of 10,000 loans can be completed to become a real "credit factory".

③Wide coverage

In the Internet financial model, customers can break through the constraints of time and geography, looking for financial resources needed on the Internet, financial services are more direct, and the customer base is broader. In addition, the customers of Internet finance are mainly small and micro-enterprises, covering some of the blind areas of financial services of the traditional financial industry, which is conducive to enhancing the efficiency of resource allocation and promoting the development of the real economy.

④Fast development

Relying on the development of big data and e-commerce, Internet finance has seen rapid growth. Taking Balance Treasure as an example, Balance Treasure has been online for 18 days, with the cumulative number of users reaching more than 2.5 million and the cumulative transferred funds reaching 6.6 billion yuan. According to reports, the size of the balance treasure 50 billion yuan, becoming the largest public fund.

Warm tips:

1. The above content is for reference only and is not intended as any advice.

2. Entering the market is risky and investment requires caution. Before you make any investment, you should ensure that you fully understand the investment nature of the product and the risks involved, detailed understanding and careful assessment of the product, and then their own judgment whether to participate in the transaction.

Response time: 2021-11-19, the latest business changes, please refer to the Ping An Bank official website announced subject.