Internet Finance’s Impact On Traditional Finance

Advances in modern information and Internet technology, especially the develop ofcloud computing, big data, mobile Internet, search engines and social networks, profoundlychange, even subvert many traditional industries, and the financial industry is no exception.In recent years, financial industry has become the most far-reaching area influenced byInternet, after commercial distribution and the media. Many Internet-based financialservice models have emerged, and have had a profound and huge impact on traditionalfinancial industries."Internet-Finance" has win the focus of public attention.Internet-Finance is low cost, high efficiency, and pays more attention to the userexperience, and these features enable it to fully meet the special needs of traditional "longtail financial market", to flexibly provide more convenient and efficient financial servicesand diversified financial products, to greatly expand the scope and depth of financialservices, to shorten the distance between people space and time, and to establish a newfinancial environment, which effectively integrate and take use of fragmented time,information, capital and other scattered resources, then add up to form a scale, and grow anew profit point for various financial institutions. Moreover, With the continuouspenetration and integration in traditional financial field, Internet-Finance will bring newchallenges, but also opportunities to the traditional. It contribute to the transformation ofthe traditional commercial banks, compensate for the lack of efficiency in funding processand information integration, and provide new distribution channels for securities, insurance,funds and other financial products. For many SMEs, Internet-Finance extend theirfinancing channels, reduce their financing threshold, and improve their efficiency in usingfunds. However, the cross-industry nature of the Internet Finance determines its riskfactors are more complex, sensitive and varied, and therefore we must properly handle therelationship between innovative development and market regulation, industryself-regulation.This paper is based on the concept and connotation of the Internet Finance, then systematically organize several domestic business models of the Intenet Finance, analyzewhat measures traditional commercial banks and securities industries should takepositively in the face of dash from Internet Finance, dissect the risk and regulatory issuesexisting in the progress of Internet Finance, and present my prospects of the trends anddevelopment of Internet Finance. At last, I sincerely wish that my paper could open awindow for every reader to learn Internet Finance comprehensively and profoundly.