Study On The Internet Financial Products Innovation By China’s Traditional Financial Enterprises

Represented by the Internet, information technology has greatly changed the world. Inrecent years, it begins to influence the financial sector. It has sustained andfundamental influence on financial behavior and patterns of human. Internet financerefers to the mode in which the emerging Internet technology is applied to implementfinancial circulation. It features low degree of information asymmetry, significantdisintermediation effect of financial intermediation, optimal allocation of resources,low transaction costs, and universal benefit. In recent years, with the rapiddevelopment of Internet financial business in our country, financial trades are conductin a variety of forms, such as the Internet payment, P2P, non-P2P network loans,crowd funding, Internet platform for financial institutions, and Internet directmarketing platform for funds and so on. Along with the launch of these Internetfinancial innovations, the forms of the financial industry are changing and thetraditional financial enterprises management has been affected. Based on the analysisof domestic and international Internet financial products innovation, this paper revealsthe strategic choice, method, strategy and implementations traditional financialenterprises applied to develop Internet financial products innovation.In this paper, there are a total of six chapters. The first chapter is introduction. Thischapter combs Internet financial research literature at home and abroad, and expoundsthe background, research purpose, research direction. Chapter2is about Internetfinancial products innovation theory analysis. By reviewing theories related to theInternet finance, this chapter defines the connotation and extension of Internet financeon two dimensions, which are Internet and financial. And puts forward thedevelopment of the Internet financial product innovation from three aspects ofpayment, resource allocation, information processing. The third chapter is about studyon the Internet financial product innovation. Through the research and analysis of theInternet financial business model and typical cases in this chapter, it put forward thatInternet finance should take the spirit of Internet, root in the financial professionalability, and strengthen mining information resources. Fourth chapter studies Internetfinancial product innovation in our country. By studying six modes of typical cases offinancial products innovation of domestic Internet finance, this chapter analyzed the demands and the modes of innovations about traditional financial enterprises, and itput forward experiences for reference. The fifth chapter carries out the analyses andsuggestions about the Internet financial product innovations of traditional financialenterprises, the five kinds of Internet financial innovation methods which includeimproving the efficiency and convenience, avoiding financial regulation, increasingthe liquidity, reconfiguring of risk, reducing agency and transaction cost. Through theSWOT analysis, it reveals that the traditional financial enterprises should takeopportunity-advantage (OS) strategy, and it put forward that traditional financialenterprises in our country should implement five kinds of strategy such as imitation,cooperation, mergers and acquisitions, self-built, and integration. The Boston matrixis applied to choose a variety of strategies. Chapter6is the conclusion. It generalizesthe research and put forward future research directions.