What is the difference between P2P lending and traditional finance?

1, different positioning, more inclusive

Traditional financial institutions are served by more than 50,000 yuan of large customers, only 20% of the people have the ability to participate, but there are those who are not valued loser customers, people may have a hand of 10,000 or 20,000 free money also want to financial management ah, it's the turn of the P2P network lending investment to them to open their arms.

2, different modes

Banks and other traditional financial institutions have a heavy foundation of physical services, mainly from the offline to online expansion; and Internet finance to online services, and now P2P lending is also prohibited from offline publicity.

3, the cost is different

Mutual fund industry threshold is very low, to P2P online lending, individuals and individuals can realize lending and borrowing on the network platform, unlike traditional financial institutions, the need for collateral registration guarantee and a series of complex procedures, there is no post-loan management, but also eliminates the cost of physical service stores. It is this difference in governance mechanisms that makes the mutual fund industry much cheaper than traditional finance.

4, the advantages of different

Traditional financial institutions have a mature management system, with a large number of customer service outlets, has long been y rooted. And P2P lending and other financial investment products of mutual funds, it is a low threshold, attracting a large number of grassroots customers and small and medium-sized enterprises, booming.

5, income risk is different

As we all know, the traditional financial products of financial interest is not high, in order to the bank, the interest rate of 5-year fixed deposits is only 3.25%, but almost no risk. The Internet financial products can easily be 10% or even higher, but the risk is higher, the Internet loan investment platform has the risk of running away and cashing out difficulties, when the investor cries for heaven and earth can not get back his principal.

6, rooted in a different way

Different from the bank to charge money for each service, most of the online lending and investment platform just entered the market are free of charge, making money is not the primary purpose, quickly enhance the platform's customer influence, occupy the market is the most important.

7, the business scope is different

Internet finance has expanded the radius of traditional financial services, single turnover, although far less than the traditional financial, but its business scope is wide, the turnover is large, so the total turnover is still very considerable, no matter what people, what businesses can find their place in the P2P financial platform.