How to treat the interconnection of traditional finance

The difference between Internet finance and traditional finance lies in different driving factors, different modes and different governance mechanisms. Internet finance and traditional finance are intermediary services for financing, payment, investment and information.

First, the driving factors are different.

1, Internet finance: Internet finance is a data-driven demand, and all kinds of structured information of customers can be the source of marketing and the basis of risk control.

2. Traditional finance: Traditional finance is process-driven, focusing on direct face-to-face communication with customers, in which information is collected, risks are managed and services are provided.

Second, the model is different.

1, Internet finance: Internet finance adopts the mode of online to offline expansion, which has a strong advantage in tapping customers.

2. Traditional finance: Traditional finance is expanding from offline to online, striving to make full use of the original foundation and improve the convenience of services.

Third, the governance mechanism is different.

1. Internet finance: Internet finance is more market-oriented. Trust can be won by making transparent rules and establishing public supervision mechanism.

2. Traditional finance: Traditional finance needs governance mechanisms such as mortgage registration and post-loan management.

Extended data

The development time of Internet finance in China is much shorter than that in developed economies such as the United States and Europe. So far, Internet finance in China can be roughly divided into three stages of development:

The first stage is from 1990 s to 2005, when the traditional financial industry is networked.

The second stage is the vigorous development of third-party payment around 20/200512;

The third stage is the development stage of internet entity financial business since 20 12. In the development of internet finance, domestic internet finance presents a variety of business models and operating mechanisms.