The difference between financial technology and traditional finance The difference between technology and finance and traditional finance.

1. Different positioning: Financial technology is mainly aimed at related customers that traditional financial industries cannot provide or pay insufficient attention to. Through the effect and low cost brought by the information technology revolution, long-tail customers can obtain effective financial services in small transactions and market segments.

2. Different driving factors: the traditional financial industry is process-driven, paying attention to face-to-face direct communication with customers, financial technology is data-driven demand, and various structural information of customers can be used as the source of marketing and the basis of risk control;

3. Different modes: Both of them are using Internet technology, but there are differences in mode design. Traditional finance is to expand offline, strive to make better use of the original foundation and improve the convenience of services. Financial technology has adopted the mode of online to offline expansion, which has a strong advantage in tapping customers;

4. Different governance mechanisms: compared with traditional financial institutions, financial technology enterprises have added some governance mechanisms, which require secured mortgage registration, post-loan management and other governance mechanisms to gain trust through formulating rules and public supervision mechanisms;

5. Different advantages: Traditional financial institutions have obvious advantages in capital, risk management, customers and outlets. Financial technology enterprises have many channels, better customer experience, faster business promotion, low cost and remarkable scale benefits;

6. Different concepts: Financial technology is an industry that uses scientific and technological means including artificial intelligence, credit reporting, blockchain and cloud computing to improve financial efficiency. Traditional finance has only three financial activities: deposit, loan and settlement.

The above is the difference between financial technology and traditional finance.

What is financial technology?

Financial technology refers to providing services for products in the financial industry through relevant scientific and technological means, improving efficiency and effectively reducing operating costs. Financial technology mainly refers to the operation mode of artificial intelligence, cloud computing, blockchain, big data and other high-tech means, bringing innovation and quality services to the financial market. This paper mainly talks about the difference between financial technology and traditional finance, and the content is for reference only.