China's Internet Finance's Development Status And Countermeasures

With the Internet popularization and technical innovation, new Internet financial pattern began to boom, the scale of Internet finance is growing.Rapid development of Internet finance has been changing people's all aspects of life constantly, and profoundly changing the pattern of the financial industry. Differing from traditional financial industry serving 20% of high-end customers with relatively limited business products and and creating 80% of the profit, the profit pattern of Internet finance is providing financial services in the long tail financial markets. Now we are in the period of high-speed Internet financial development, understanding the current situation of the development and understanding its development trend are particularly important. Internet finance's current business model is mainly including third-party payment, big data credit investigation, P2P credit, crowdfunding, traditional financial services deliverd by internet, and internet banking. Internet financial development in China is facing problems of lacking of regulation, unsounding social credit system and growing risks. Internet financial institutions now are facing serious homogeneity, intense competition, mixed management trend, integration of industry resources, creating the industry brand and establishing a comprehensive financial service network is the current mainstream of effective development. Within the Internet financial markets, both traditional financial institutions and new Internet financial enterprises are pursuing the layout of the integrated industry pattern. This paper selects the Ant financial services group's case to analyze the Internet financial business model and the developing trend of Internet finance. Case study on Ant financial services group has great significance in the study of how traditional financial enterprises and financial institutions's making steady development in the new situation.Current research and discussion on the Internet finance varies from the concept, main mode, risk management, to the influence on traditional commercial bank. This paper tries to summarize the current situation and trend of development of the Internet finance, and through the case study of Ants financial services group to provide advice and opinions for the development of the Internet finance. Allen (2002) argue that, although Internet finance is based on Internet technologies, the Internet thinking pattern used in finance is the real essence of the Internet finance not Internet technology. Xie ping, Zhou Chuanwei and Liu panger (2014), the current Internet financial form is divided into six main types of e-finance, mobile payment and the third party payment, credit investigation and Internet loans based on big-data, P2P loans and crowdfunding. Zhang Yingqaing (2013) analyzes the current Internet financial development and problems from the perspective of industry risk, financial innovation, credit environment and market environment, and makes suggestions for improvement.This paper studies the case of Ant financial services group with theory analysis, chart analysis, comparative analysis, data analysis. Thi paper is divided into six parts, the first part of the paper introduces the background and meaning of my case study, the structure of this paper, the research significance, research methods and innovation. The second part introduces the Internet financial impact on the society as a whole respectively from aspects of the Internet financial concepts, the comparative advantage of the Internet finance compared with traditional finance, Internet financial risks and China's Internet financial development. The third part analyses main business model's characteristics, current situation of the Internet finance, the problems and challenges, the trend of Internet financial development in China. The fourth part is a case study on Ants financial services group. The fifth part is about the countermeasures and suggestions of Internet financial development in China. The sixth part is mainly about conclusions, including:(1) the dominating Internet financial business models are the third-party payment, big-data inquiry, P2P credit, crowdfunding, e-commerce loans, Internet banking, e-finance. (2) Internet financial development in China is facing problems of lacking of regulation, unsounding social credit system and growing risks. (3) the developing trend of China's Internet finance. (4) Ants financial services group's ecosystem is effective in cracking the existing Internet financial business's serious homogeneity problem, and good for the standardization of Internet finance. (5) Suggestions for Internet financial development countermeasures in our country includes enhancing supervision efficiency, strengthening industry self-discipline; Improving the level of risk control; forming sound social credit system, strengthening the industry credit information sharing mechanism; strengthening Internet financial product innovation, service mode innovation; strengthening big-data analysis and cloud computing ability.There are three aspects of innovation in this paper. First, the paper studies from the angle of the present situation and trend of development of the Internet finance and discusses the development of the Internet finance in our country, in order to get a better understanding of the Internet finance. Second, this paper focuses on the case of Ant financial services group as a typical case of Internet financial integration. Third, the data and documents involved in this paper are relatively new, reflecting the current development of the Internet finance. Weaknesses of this paper are research angle not being comprehensive, quantitative analysis not being strong enough.