What's the difference between Yu 'ebao and traditional banks? What's the difference between Yu 'ebao and a bank?

Yu 'ebao mainly invests in monetary funds and is under the jurisdiction of securities regulatory agencies. Traditional banks are supervised by China Banking Regulatory Commission and China People's Bank. The former's interest rate return level is determined by the real market supply and demand relationship, while the bank's deposit interest rate is not so, which is basically artificially low.

At present, monetary funds are in short supply, and the yield of monetary fund products and wealth management products is very high. When the income spread between banks and wealth management products is relatively large, Internet financial products such as Yu 'ebao are very attractive. However, with the further deepening of interest rate marketization reform, especially once the deposit interest rate ceiling is cancelled, this part of arbitrage opportunities will soon disappear.

The difference between Yu 'ebao and traditional banks in marketing channels is not the decisive factor. There is no upper limit on the interest rate of money market products, but there is an upper limit on the interest rate of banks. This is the decisive difference.