The Study Of China’s Internet Finance Competitive Advantages

At the end of the twentieth century, the development of Chinese financial industry is rapidly. Since the2001accession to the WTO, the traditional financial industry receiving from the new pattern of various challenges the idea of the world. After the Internet revolution, Chinese financial markets started to electronic and networking. With the rapid development of economy and the popularization of Chinese network, Internet Financial emerge as the times require and flourishing. The third party payment platform and extend the trading tools also gradually develop and grow, and favored by young people, also have a great impact on the traditional banking business. The development speed of Internet financial services industry is very fast, the influence is growing. However, the Internet financial service while bringing convenience to people, also has many risks. In Chinese current level of economic development, the Internet Financial what operation mode, what impact and influence the development of the development mode of China traditional financial industry, and what are the risks, how to prevent and control the risk, these are worthy of exploration and research problems. This is the focus of this research.This paper firstly introduces the brief history of the Internet financial development and domestic and foreign theories of literature. To USA and European Internet financial development as reference, to study China Internet financial development model, the direction of development and risk prevention and control. Europe and the United States began to experience of nearly30years of financial revolution from90in the early1980s, the exploration and development of banking, securities, insurance three financial industries, the financial development of a mature internet. Further study of multiple aspects of Internet financial safety and soundness, competition policy, consumer and investor protection and global public policy, with reference to our country’s financial industry.Secondly has introduced the domestic current Internet financial operation model, described in detail P2P net lending model, crowd funding model, data model, financial mode of third party payment and other financial model. Thirdly, based on the analysis of literature review and the present situation, through the study of Michael Porter’s "Diamond Model", from the six aspects of production factors, demand conditions, related supporting industries, market structure and enterprise strategy, opportunity, government analysis of advantages compared with the traditional Internet financial service. And take the third party payment platform as an example, a detailed analysis of China’s Internet financial competitive advantageFinally, this paper use the Internet financial competitive advantage and puts forward some policies and suggestions to promote the economic development of our country.