Traditional Financial Institution's Transformation Strategy For Changing Into Internet Financial Institution

In recent years,the Internet finance developed quickly and become an important part of inclusive finance in our country. March 2014, Internet financial was first written into the government work report.The report proposed to "promote the healthy development of Internet finance, improve financial supervision and coordination mechanism. March 2015, Li Keqiang in his government work report for the first time put forward the "Internet+" plan, and raised to the national strategic level. "Internet+finance has been widespread concern in the community. Just a few years, Internet finance has developed with P2P, third party payment, crowdfunding, big data credit investigation and other forms. June 2013, Alipay cooperated with Tianhong fund issuing a monetary fund which is called Yu'e bao. Once it came to be vigorously pursued, on the first day, the fund was sold more than 50 million. Subsequently, a number of Internet companies and traditional financial institutions began to monetary fund. Some third party payment like Alipay and Tenpay cooperate with the electronic business platform and quickly capture the market. After 2014, P2P was rapidly rising. Now, more than 2500 platform operating normally. Only in 2015, transaction through P2P is nearly 1 trillion. Then, crowdfunding began to rise, it provides a showcase for many innovative products. In the last couple of years, comparing with Internet finance, traditional financial institutions are facing enormous challenges. Because of savings and loan spreads narrowed, the rise of direct financing and increase of bad debt rate, traditional financial institutions, particularly commercial banks' profitability become decline. Traditional financial institutions urgently needed to speed up restructuring and development, innovative financial services, Internet finance will undoubtedly provide an opportunity. Many traditional financial institutions began to be added to Internet finance, investing in P2P, crowdfunding, big data credit investigation, and other fields.Traditional financial institutions have a high level of financial services, but most of them are lack of experience in the field of Internet. So, this paper research on the business operation mode of Internet financial, and ues Ping'an insurance(group) company of China as a case, analyzing it's innovation and disadvantages of Internet finance services. It has important theoretical and practical significance to traditional financial institutions start Internet financial services.The first chapter:Inlroduction. Firstly, this paper is introducing the development of Internet finance and describing the research value. Recalling relevant research at home and abroad about Internet finance were reviewed. It summarizes the mainstream perspectives on influences between Internet finance and Traditional financial institutions.The second chapter:This part defines the concept of Internet finance.Then, it outlines the classification criteria ofnternet banking. It describes operational processes for each mode.The third chapter:This part describes the beneficial effects and risks when traditional financial institutions transform into the Internet finance. It include three beneficial effects and four risks.The fourth chapter:case-analysis of Ping'an Insurance(group) Company of China transform into the Internet finance. It introduce the layout of Ping'an Insurance(group) Company of China. Then,this part present benefits and risks of the group transforming into the Internet finance. Finally, it summarize the core elements of the group's initial success.