A Reserch On The Development Of Internet Finance

Internet Finance is a new ecological financial brewing in the Internet era, and put into practice by technology companies such as Alibaba, its connotation and denotation are constantly evolving.Web3.0is also called instant network, the so-called instant network is large-scale Internet users are online at the same time, generating data, and these processed data makes Internet itself becomes a giant database, all data can easily be used. This is also known as the era of "big data". Internet financial integration social networking, online transaction data to make customer credit judgment, use of electronic means of payment to complete the credit consumer loan lending practices.Another point of intersection of Internet and Financial is sector as the nature of the Internet--"network effect":the effectiveness of a network is proportional to the square of its size. The larger of a network, the more useful it is, Internet and Financial both have the effect.It is worth noting that the the purpose of Internet Financial is FINANCE. Internet Finance does not focus on the instead of Internet technology to traditional financial, but on the additional that communication technology brings to traditional payment, the Internet generated a large amount of data and data mining tools the Internet generates, and a resulting useful complement of Internet credit to the traditional financial tools and financial services.But the nature of Financial is risk management. Another result that network effect brings to financial industry is external risk, so the financial industry must be included in the stringent regulation. Due to the strong external risk, Internet-Financial company is difficult to remains adequate security after expanding the scale and including in the supervision of the financial system. In other words, the future of Internet-Financial company may not become financial institutions directly engaged in front-line business, but more likely to become a financial data service providers that provide the basic data and data mining technology for traditional financial institutions. In fact, as model Internet-Financial companies, Alibaba and Amazon great efforts to build cloud services and data bases in recent years, which has laid the foundation for this development prospects.Internet Finance is drawn by the commercial practice, so this article take the commercial practice of Alibaba as a starting point, summed up the five stages of development since the founding of Alibaba, and analyzed the internal mechanism of Alibaba created, called "business ecosystem". After that recalled the history of the development of the Internet in two dimensions, analysis the internal relations of Internet and Finance. Finally, the two business models of the Internet Finance (electronic payment, online micro-credit) were analyzed to determine its development direction.The innovations of this article:First, the new study object. Internet Finance is a latest developed-business model, so the most of existing researches are for its various scattered modes, but not as a whole. Second, the new inductive method. The article starts analysis from Alibaba company’s business practices, witch corresponds to the special development path of Internet Finance, avoids too theoretical and the away from practical.