Study On The Internet Finance

The Internet Finance, a product of a combination of traditional financial industry and the Internet, is a new financial ecology which relies on payment, cloud computing, social networking, search engine and other Internet tools to realize the accommodation of funds. It keeps expanding its connotations and extensions. Currently Alibaba’s innovation in the Internet finance filed a great representation, and its Alipay, Ali Small Credit and Yuebao (a money-market fund promoted by Alipay) respectively represents three different modes of Internet finance. Third-party payment, from previous online payment to emphasis of mobile payment, has gradually transferred to offline businesses, and this has shocked the payment intermediary position of the bank; Yuebao, as one kind of money market fund, has attracted millions of people to "move their deposit" with its extremely low threshold, superior mobility and very simple processes, and it has promoted financial management concepts to thousands of families; Ali Small Credit is supporting more and more small businesses to successfully get loans with its low cost, high efficiency and superior risk control, and it has provided a new idea to small and micro enterprises for solving the problem of loans. The rapid development of Internet finance has brought growing impacts on traditional financial industry, especially the banking business, and it is changing the pattern of the entire financial industry. The Internet finance was born along with the development of electronic commerce, thus this paper takes the Internet financial business of Alibaba as a breakthrough point:first introduces the basic situations of Alibaba and Ali finance, and then analyzes the case, including the background of getting involved in financial industry, the development status of each mode, advantages and disadvantages, and so on. Through the analysis of each financial model of Alibaba and integration of the results together, this paper further discusses the relationship between Internet finance and commercial banks, and makes a conclusion that they not only compete with each other, but also need to strengthen their cooperation. Finally, this paper carries out some preliminary discussions about the significance of the Internet finance development, existing problems and solutions, and put forwards the prospects of the development of Internet finance.