Typical Businesses And Economic Analysis Of Internet Finance In China

Traditional financial intermediation is suffering the huge impact from the emergence of the Internet financial, the phenomenon of "Financial disintermediation" arises accordingly. In June 2013, the launch of "The balance of the treasure" joints alipay with Celestica fund together and this enables the users establish accounts and do purchase on line conveniently. Meanwhile, in response to such shock, banks are taking measures by promoting different financial products. For example, Bank of Communications launches a business named "a real-time withdrawal of Monetary fund " and Ping An Bank promotes its financial service called "safety earning". The conjunction of on-line financial product and fund leads to a result that bank deposit turns into disintermediation, and the commercial banks are facing a huge challenge caused by higher capital cost and customer churn. Meanwhile, view disputes about the encouragement and supervision on the Internet financial are aroused constantly, mainly between Ma Weihua who holds the point to encourage and Yang Kaisheng who sustains a quite different point, to supervise.Based on the review of development history of internet financial, this paper firstly analyzes the root of the Internet financial and the influences caused by such business. Secondly, by using SWOT analysis method, taking reference of three kinds of typical Internet financial businesses which include third-party payment, personal finance and P2 P network loan, this paper analyzes the features of Internet financial mainly from the financial perspective of interest rate liberalization which includes interbank offered rate, national bond repossessed rate, bank profits and the average level of historic currency fund. Finally, taking Ali financial as a typical example, with a consideration of its development history as well as current situation, this paper analyzes the close links of Ali financial inter businesses by SWOT method and gains an important inspiration on the industry development of internet financial.The conclusions of this paper indicates that with a special opportunity and its unique competitive advantage, Internet financial earns its place by fulfilling demands to different kinds of users and advances this industry to innovate and transform, while it should be clear to its threatens and disadvantages as well. In the mean of analysis, this paper explains comprehensively and scientifically referring to the disputes come from different ranks about internet financial issue and defines clearly on its further development. More, by study on such a special case, this paper offers the important guidance in internet financial industry to these aspects which includes the construction of personal credit system and the construction of infrastructure center in the background of big data. This paper also provides certain value on internet financial orientation and its further development in the environment of building financial ecological circle.