The Impact Of The Internet Finance On The Traditional Financial Industry

In recent years, the Internet and financial business integrate constantly, andinternet finance is a kind of business pattern that derived from constantly innovation inorder to meet consumer demands, and its development has pass through three part ofperiods: electronic bank, electronic commerce and the third party payment. Thedifference of internet finance and traditional finance is that except different media,what is more important is it can make the traditional financial services become moretransparency, lower cost and wider participation in the group with its convenient,innovative and high communication capacity, so it had a big impact on the traditionalfinancial industry, and make the internet finance becomes a new financial developmentmode of the financial industry.Both of the Internet and the finance contain science and technologyinnovation, and is closely related to people living, so the combination of this two areasmust produce many problems, such as although the internet finance servicesand products greatly facilitated the payment account management, user accountsand assets demand, but at the same time, also caused a redistribution of interests of thefinancial industry.“Whether the Yu’ebao should be banned” is a good example.For this new financial concept, this paper will start from the characteristics of theinternet finance, expounds its impact according to its the advantage and potentialrisks, to analysis the future development of internet finance, puts forward somesuggestions on the risk management, and hope the internet financecan develop healthily in China.