The Research On Innovation And Diffusion Effect Of Internet Finance In China

In recent years, the Internet financial innovative products has become an indispensable part of people’s daily life. The Internet financial innovation is based on the traditional concept of financial integration of the rapid development of information and communication technology,evolved from its birth,they showed vigorous vitality and development capacity, which makes the Internet financial innovation has become the new focus of competition, and also become the focus of research scholars.This article launches the research from the following three aspects:mechanism of the Internet financial Innovation, research and forecasting of the diffusion process of the Internet financial innovative products, the diffusion effect of the internet financial innovation. Firstly, based on analysis of financial innovation motivation, combined with its own characteristics of the Internet financial innovation, analyze the mechanism of the Internet financial innovation, clear its logical starting, innovation models, constraints and focus of promoting innovation. Next, analyze whether Bass model is applicable to Yu Ebao, fit the model with datas of Yu Ebao users, analyze and forcast diffusion process of Yu Ebao by the fitting results. It concludes:Bass model is applicable to the diffusion process of the Internet financial innovative products, the degree of fitting of the model is high, parameter estimation is notable, prediction accuracy is ok. The diffusion of Yu Ebao includes three stages:rapid diffusion, smooth diffusion, towards to saturation. Lastly, analyze the diffusion effect of the Internet financial innovation from the perspective of the impact to commercial banks. Diffusion effect is mainly manifested as impact effect in the second stage of the diffusion of the Internet financial innovation as well as complementation effect in the third stage. The result of quantitative analysis shows that the impact of the diffusion of online sales of financial products and internet fund on fee income to small and medium banks is greater than to large banks. The impact of the diffusion of internet fund on net interest income to large banks is greater than to small and medium banks. Thus,banks of different sizes should make its reaction in the light of its own characteristics.