How does Internet finance change traditional finance?

In the current domestic mainstream financial ecology, the traditional financial model represented by banks, securities and insurance has gradually exposed various long-standing problems: First, state-owned financial institutions monopolize and non-financial departments are not allowed to engage in financial business. It is this monopoly that leads to the long-term lack of product innovation. At the same time, due to the complicated procedures and high cost, it is difficult for small and medium-sized enterprises and ordinary users to enjoy good financial products and related services. The backwardness of traditional financial services has caused a huge financing gap in the real economy, and personal funds need to find more suitable funds for export, which has left room for the development of Internet finance.

Break through the limitation of time and space;

In the traditional financial business model, first of all, you have to go to physical financial outlets such as banks or securities. Through various complicated account opening procedures, customers need to open an account in the offline business hall and fill in a lot of complicated information, which leads to a large number of customers unable to solve the corresponding trading problems such as bank securities in time and efficiently.

But now, as long as there is a network, individuals can easily participate in financial business. Internet finance companies can handle everything online in an hour. Related business processes, including law, risk, compliance and data perfection, are all handled once through technologies such as face recognition and online submission. Internet finance has broken through the space limitation and can serve consumers anytime and anywhere. Futu Securities, founded by Li Hua, an employee of Tencent 18, abandons the traditional business model of offline business departments and brokers in the financial industry, realizes the full-process service of the Internet, and greatly reduces the operating cost through the online light asset mode, thus subsidizing users with more funds.

It is precisely because of breaking the time and space constraints that user activity and transaction frequency have exploded. In 1970, the shares traded in new york changed hands every five years on average, once every two years in the late 1980s and once every four months in the 1990s. But in the era of Internet finance, the trading cycle became four days or even four hours.

Break the niche service:

Technology-based startups and new market entrants have subverted the products and services of the traditional and once unattainable financial services industry. In the traditional financial era, the entry threshold of many financial products and services is relatively high, whether for enterprises or individual users. However, with the popularity of internet finance, including financial management and lending, people who generally own mobile phones can apply for loans and investments. , get undifferentiated service anytime, anywhere.

The development of P2P helps to alleviate the loan shortage of small and medium-sized enterprises and promote the development of small and medium-sized enterprises and entity enterprises. In terms of personal financial needs, including investment and financial management, the original closed operation mode has been broken through the channel of Internet finance, and individual users can easily participate in Internet financial management and get corresponding income, which is also a very important part of inclusive finance.

Business profit model:

In the traditional financial industry, due to outdated models, bloated service personnel and low efficiency, physical outlets are also facing rising operating costs and security costs, and the overall cost remains high. The corresponding business expenses have also been criticized. Internet finance has a huge cost advantage. At the same time, due to financial related policies, the whole domestic financial industry is relatively conservative and in a relatively monopoly position. In this case, income and profit are relatively guaranteed to a great extent. Under the monopolistic financial situation, the original financial institutions only pay attention to blindly increasing income, but do not pay attention to improving the customer experience and service of users.

The key to the business model in the Internet era is to enhance the user experience. At the same time, it can promote and maintain user groups at a lower cost, and realize multiple commercial realization through the accumulation of quantity. European banks calculated the average cost of a single financial business. The operating point is $65,438 +0.07, the telephone bank is $0.54, the ATM is $0.27, and the cost through the Internet is only $0.65,438 +0. The cost advantage is obvious. In traditional brokerage services, domestic consumers speculate in Hong Kong stocks. The fee is two thousandths, with a minimum of HK$ 65,438+000 per transaction. In addition, Futu Securities, an internet finance, is promoted by internet thinking and mode, and adopts the form of commission subsidy and invitation without commission. The commission is three ten thousandths, the lowest is 3 yuan, and the lowest handling fee is greatly reduced. Besides, there are many commission-free opportunities.