Please compare the two modes of traditional finance and Internet finance, and talk about the advantages of Internet finance.

Internet finance is an organic combination of Internet technology and financial functions. Relying on big data and cloud computing, a functional financial format and its service system are formed on the open Internet platform, including the financial market system, financial service system, financial organization system, financial product system and Internet financial supervision system based on the network platform, which has the characteristics of inclusive finance, platform finance, information finance and fragmented finance that are different from traditional financial models.

Manifestations: crowdfunding, P2P online lending, third-party payment, digital currency, big data finance, information-based financial institutions, financial portals, etc.

Features (advantages of Internet finance over traditional finance):

First, the cost is low

Under the mode of Internet finance, 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.

Second, 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".

Third, the coverage is wide.

Under the mode of Internet finance, customers can break through the time and geographical restrictions and find the financial resources they need on the Internet, so that financial services are more direct and the customer base is wider. 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.

Fourth, rapid development.

Relying on the development of big data and e-commerce, Internet finance has grown rapidly. 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.