What is the difference between Internet wealth management and traditional bank wealth management products?

1. Internet wealth management is different from bank wealth management: at present, the investment threshold of domestic bank wealth management products is relatively high, which is generally more than 50,000 yuan and 6,543,800 yuan according to the regulations of the China Banking Regulatory Commission. Many people can't reach this high threshold, which is not a good financial channel for ordinary investors. However, the threshold for Internet financial management is relatively low. Generally, the starting price in 50 yuan is 100 yuan, which has been welcomed and sought after by many investors.

Second, the annualized income of Internet wealth management is higher than that of bank wealth management: After several years of development, the types of Internet wealth management products are more and more abundant and the term is flexible. Choosing a platform with high security and good risk control to invest, the income will be much higher than bank financing.

Third, Internet financing is more flexible than bank financing: Internet financing is different from bank financing in terms of liquidity. Most bank wealth management products repay the principal and interest after the product expires, and the term is generally long, which belongs to medium and long-term wealth management products. When purchasing wealth management products, we should also pay attention to whether their liquidity matches their own capital utilization arrangements.

Fourth, Internet financial management is more convenient and faster than bank financial management: Internet financial management can complete all processes such as recharge, investment and embodiment through computer or mobile APP, which is very convenient. However, bank financing requires investors to bring their ID cards to the bank counter to go through the relevant procedures before investing. In contrast, Internet financing is more convenient and faster than bank financing.

5. Internet financing projects are often more transparent than bank financing: most of the current bank financing products do not introduce the connection between the use of funds and income, and so on. Internet financial management projects are often more transparent than banks. Projects on the Internet financial platform will basically indicate the purpose of funds and borrower information. Investors can also independently identify and select their own satisfactory projects according to their own conditions.

6. Internet financing is guaranteed, and bank financing fluctuates: as we all know, most bank financing products rely on bank credit, and there are almost no risk compensation measures and means. Internet financial management is different, either with the borrower collateral and mortgage registration procedures, or with a third-party guarantee company to fulfill overdue compensation obligations.

Seven, the security of Internet financial management is controllable, and bank financial management seems to be safe, but it is not. Now many media are repeatedly reporting the losses of bank wealth management products, because banks will sell wealth management products of other institutions in addition to their own wealth management products. But for Internet financial management, the risks of Internet financial management are relatively controllable, mostly below the medium level. As long as the platform is observed and screened at different levels and is not tempted by high returns, most risks can be avoided.