What is the difference between Internet financial management and traditional finance?

The field of finance is very mature and there is basically no substantial innovation.

But no one can see the end of the development of the Internet, and no one can tell how much of a disruptive impact it will have on the financial industry.

For now, the definition of Internet finance is given by the People's Bank of China in its monetary policy implementation report for the second quarter of 2013: As an emerging field that combines the traditional financial industry with the Internet, Internet finance has high transparency, extensive participation, and low intermediate costs.

, convenient payment, richer credit data and higher information processing efficiency.

Internet financial industries such as third-party payment, online credit, crowdfunding, and other online financial service platforms are rising rapidly.

2. Is it just about conducting financial activities on the Internet?

Are there any substantive changes?

Internet finance is the combination of finance and the Internet, but it is by no means as simple as "carrying out financial activities on the Internet."

At present, the Internet has the ability to completely change the traditional financial industry.

The People's Bank of China said that Internet finance has the advantages of high transparency, extensive participation, low intermediate costs, convenient payment, richer credit data and higher information processing efficiency, looking at them one by one.

High transparency: How much money do most financial institutions and financial practitioners make?

Information asymmetry.

The culture of finance is elitist and mystical; the spirit of the Internet is openness and sharing.

Putting finance on the Internet can greatly improve transparency and readable information, which partially solves the problem of information asymmetry.

Extensive participation. Due to the convenience of technical means, many people who did not participate in finance and did not need to participate in finance (small funds) are encouraged to participate. This not only greatly increases the number of funds and participants, but also increases the flow of accumulated funds and improves the utilization of funds.

efficiency.

Low intermediate costs, no outlets, no counters, no large labor costs, etc. These are the advantages of the advancement of the times and technology.

Convenient Payment Nowadays, we can make a lot of payments and transfers with our mobile phones. Your cash and bank cards are used less and less.

In the future, there will definitely be an era where you can perform all payment activities with just your mobile phone, watch, or even your fingerprint.

Isn’t this subversive?

Rich credit data and high data processing efficiency In the era of big data, it is impossible to predict how big the data will be and how far data mining can be achieved.

For now, through data analysis, Alibaba Small Loans can achieve an interest rate of 18% and bad debts below 1%.

If big data can be large enough in the future, it will be a new "credit information system", which will definitely be disruptive in improving the efficiency of fund utilization, not to mention that Yu'e Bao can achieve T+0 and term mismatch through data analysis.

Small application".

There is another point that the People's Bank of China report did not dare to mention, which is Internet currency.

Internet currency is even more disruptive to the financial market. The value of Bitcoin remains to be seen, but at least this value has been recognized.

Q Coin, a "currency" with no room for speculation, is almost equivalent to RMB on the Internet.

This subverts the one-manager model of "the central bank uniformly issues currency and uses national credit as a guarantee".

Many "Internet currencies" have been used as the basis for commodity pricing and as a medium of transaction within a certain range.