Analysis of the inevitability of the rise of internet finance from the perspective of the needs of different industries and individuals

Internet finance (ITFIN) refers to a new financial business model in which traditional financial institutions and Internet enterprises use Internet technology and information communication technology to realize financing, payment, investment and information intermediary services.

The inevitability of the rise of Internet finance;

1, high efficiency: Internet finance business is mainly handled by computers, and the operation process is completely standardized. Customers don't need to queue up, so the business process is faster and the user experience is better. For example, Ali Xiaoyu relies on the credit database accumulated by e-commerce. After data mining and analysis, the risk analysis and credit investigation model are introduced. It takes only a few seconds for merchants to apply for and issue loans, and they can complete 10000 loans every day, becoming a real "credit factory".

2. Wide coverage: Under the Internet financial model, customers can break through the time and geographical restrictions and find the financial resources they need on the Internet, making financial services more direct and customer groups more extensive. In addition, the customers of Internet finance are mainly small and micro enterprises, covering some blind spots of financial services in the traditional financial industry, which is conducive to improving the efficiency of resource allocation and promoting the development of the real economy.

3. Rapid development: Relying on the development of big data and e-commerce, Internet finance has achieved rapid growth. Taking Yu 'ebao as an example, Yu 'ebao went online 18 days, and the cumulative number of users reached more than 2.5 million, and the accumulated transferred funds reached 6.6 billion yuan. It is reported that the scale of Yu 'ebao is 50 billion yuan, which is the largest in Public Offering of Fund.

4. Low cost: Under the Internet finance mode, both the fund supply and demand sides can complete information screening, matching, pricing and trading by themselves through the network platform, without traditional intermediary, transaction cost and monopoly profit. 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 their own financial products on an open and transparent platform, which weakens the degree of information asymmetry and saves time and effort.

Tips: The above contents are for reference only.

Reply time: 2021-11-22. Please refer to the latest business changes announced by Ping An Bank in official website.