Research About The Internet Finance

Recently, the term Internet financial frequently appears in the financial world, and it becomes the new favorite of the ones who are interested in fi-nancial investment. As the name implies, it combines the traditional financial sector with the powerful resource advantage of the Internet form. It depends on a variety of Internet plat forms and the aid of some Internet technology such as the cloud computing and big data. It also absorbs the new concept of "open, equality, cooperation, share" and realizes the functions such as fi-nancing, payment and information circulation. In addition, it improves the investment methods and channels, as the consequence, it makes an important impact on the traditional financial pattern.This paper is divided into the following six parts to research the Internet finance. The first part is the introduction which mainly includes the basic background, significance of the topic, literature review, innovative and feasi-bility of writing this article. The second part details the different stages of development and the development pattern. In the end, it makes a prediction of the trend of future development. The third part is the focus of this article which mainly uses the modified KMV model on the credit risk measurement of the Internet financial. First of all, it introduces the KMV model and then introduces the modified KMV model. At last, it shows how to use this model to analyses the Internet financial credit risk. In this paper, the sample value comes from the Oriental Wealth Software and part of the data is based on the information got from the Service Center of Guotaian Data. I select eight stocks from the network financial sector as the research objects. In addition, I also choose eight stocks respectively from the Shanghai A-share stocks and the ST stocks as control groups. I use EXCEL and MATLAB as the main tools to deal with the data. I use the historical volatility method when calculating the value of equity volatility. Then I get the default distance of 24 companies and default rate values so that I can make comparison and analysis on the credit risk degree of the three groups. And I use the "shell" resources effect to explain for the result reasonably. In the fourth part, I choose one of the many Internet financial products——Yu’ebao as the research object. Then I analyze the variety of impact on the traditional banks and the interest rate marketization. The fifth part is the suitable continuation of the above. In view of the current fierce competition situation, I put forward different measures for the two sides so as to achieve the purpose of mutual benefit and win-win results. In the last part, I summarize the whole article, reflect the shortage and reasons for it, then I prospect the ideas and direction of future improvement.