The Study On Model Of The Internet Finance In China

Nowadays, the Internet is one of the most popular media. When the Internet and finance, the most popular industries, encountered each other, the new technologies, represented by the Internet, will have innovative effect on the existing financial model. The year of 2013 is named to be “the First Year of the Internet Finance”. The Internet finance is welcomed by the market for its unique advantages. As a variety of innovation models start to emerge, the traditional financial institutions start to explore innovative transition to the Internet.The Internet finance has positive influence on the development and revolution of the traditional financial models. First, the innovation that the Internet finance has brought is not limited to the innovation of the models. Further, it indicates the Internet mode of thinking, namely “openness, equality, cooperation, sharing”. Second, it gives play to the regulatory role of the market under the Internet finance. The advantages of decreasing marginal cost gradually appear. And financial efficiency will be improved substantially. What’s more, it is a financial model that is more democratic instead of professionally managed and controlled by authorities, where the division of labor and professionalization in the traditional financial industry will be weakened, the participants of the market will be more popular, and the enormous benefit it brings will be more universal. The development and revolution of the Internet finance will benefit the revolution of financial system of our country, which can promote interest rate liberalization in our country.The body of this thesis includes five parts. It begins by elaborating the background and significance of the study, literature review of studies in China and abroad, the objectives of the study, methodology of the study, and the innovation of the study. Then it goes on to analyse the definition of the Internet finance which points out the causes and characteristics of the Internet finance. After that, by illustrating the specific model of the Internet finance, it pinpoints problems emerged in the development of the Internet finance, including the defects of credit system, imperfection of supervision on policy, the imperfection of network environment and so forth. And in the next part, it makes empirical analysis based on the theories mentioned before. It demonstrates the promotion that the Internet finance has made to the development of finance in our country. And it concludes that the P2 P model of petty loan through the Internet and the third party payment model are more beneficial to the development of finance of our country. Finally, it comes into a conclusion that the Internet finance is doomed to be the development tendency of finance industry in the future. And it suggests that the credit system should be build, the risk management should be enhanced, and the supervision mechanism of the Internet finance should be perfected.The innovation of this thesis lies in the following two points. On the one hand, it finds out a comparatively new perspective regarding the Internet finance. Most of the previous studies are aimed at one individual model of the Internet finance, which lack a systematic study of the topic. And there are also comparatively rare studies focusing on new emerged models like crowdfunding, the Internet banking, virtual electronic currency and big data. On the other hand, the methodologies adopted in this thesis are comparatively new. Based on previous studies in China and abroad, it makes a comparative study by using empirical methods and Marxism economics to analyse and predict the development tendency of finance of our country under the Internet finance. It contains practical significance and perceptiveness, compared to theoretical studies.