The Research On The Development Of E-commerce Finance

With the development of the times, the combination of traditional financial models and the Internet has become to be closer and closer. As a consequence, Internet finance is developing at an accelerating rate. In the wave of the Internet finance, the model which is based on the e‐commerce platform stands out. Compared with other models, e‐commerce owns lots of features, such as the wide range of financial services, numerous number of customers, financial innovation to a large extent, and so on. Furthermore, it has big impacts on the way of thinking in finance and the model of services, which attracts a high level of attention in society. Along with the advantages of e‐commerce, the internet and finance, e‐commerce finance solves the credit default of online payments, the difficulties for small and micro enterprises to get loans and the homogenization as well as the inefficiency in personal finance services. Indeed, it remedies the defects of the traditional financial model to a large extent. This paper states that as e‐commerce finance is an important part of Internet finance, the further research on it will help the understanding of the characteristics and the advantages of Internet finance and the analysis of the development of the financial system.Firstly, this paper discriminates the concept of Internet finance and highlights the reflection of the innovation in the model of the service, which is essentially the digital extension of traditional finance. Secondly, the reasons of the appearance of the Internet finance are introduced. Objectively, the flawed traditional financial model provides a broad space to its development. Subjectively, the demand pull from changes in consumer behavior and the supply push from the development of information technology make a great contribution to the Internet finance. Thirdly, the characteristics of the Internet finance will be shown, along with its benefits with respect to the traditional financial model. Unlike the previous research paper, this study focuses on the e‐commerce finance. It summarizes the business services, including the third‐party payment, microfinance and personal finance. The history and the service range of Alibaba, Jingdong and Tengxun provide solid examples. In the following, SWOT analysis is used to discuss the strength, weaknesses, opportunities and challenges of the e‐commerce finance. Lastly, relevant policy recommendations and prediction of its future development are presented.