What are the advantages of Internet finance and traditional finance?

1 For banks, the choice of ordinary people is no longer the age of queuing for banking business. People have more choices, not only to save money, but also to manage money, and at the same time to get the guarantee of funds. Although banks occupy an irreplaceable position in people's minds, as a traditional finance, banks are no longer the only choice for ordinary people.

Many people feel that in the face of the rapid development of Internet finance, enterprises in the traditional financial industry have already felt the "cold behind" and deeply felt the competitive pressure. For banks, this pressure is real and direct. While Internet wealth management products such as Yu 'ebao, Licaitong and P2P wealth management are selling well, the bank's deposit funds began to "move".

3 In this way, can Internet finance really subvert traditional finance? This can be seen from the essence of Internet financial products. Take Internet financial products as an example. At present, Internet financial products are mostly linked to money market funds, investing in interbank deposits, short-term government bonds and central bank bills. In the early stage of interest rate marketization, there were differences in interest rates between money market and deposit market. The money fund has set up a channel for ordinary individual investors to enter the money market, so that they can get higher interest rates than ordinary deposits, which objectively promotes the marketization of deposit interest rates.

4 From the macro-environment of China, although the traditional financial market is occupied by Internet finance, it is unrealistic for Internet finance to subvert the tradition. We should know that banks are not vegetarians. Internet finance is accelerating the marketization of interest rates, forcing banks and other traditional financial enterprises to speed up changes and participate in competition. More innovative products of banks are also incubating. Actually, it doesn't matter who subverts who. It is in the best interests of the people to hold their own "territory", develop together, and finally give full play to their respective advantages and cooperate.