Business Modelsof Internet Finance And Its Impacts On The Trust Industry

With the boost of information technology, such as big data and cloud computing, Internet finance(ITFIN), including third-party payment platforms, P2 P online loans, and crowd funding has had a significant impact on the traditional financial industry, including the trust industry.Starting with a summary of ITFIN's emergence and development in China, and the business models of current ITFIN providers and its future trends, the following article intends to explore the business advantage for the trust industry on business model transformation and innovation. It compares the difference between the trust industry and ITFIN, and analyzes the increasing challenges posed by its online competitors. And it also introduces the innovation in sales and marketing channels and product design by the trust industry.The article has four sections:Section1: Current status of ITFIN and its future trends. It outlines the emergence and growth of ITFIN, and analyzes the current business models of China ITFIN providers. It indicates that ITFIN can provide channels for Inclusive Finance under the background of long-term institutional Financial Repression.Section2: Current status and development of the trust industry. It explores the business advantage of the trust industry on business model transformation and innovation. And it also compares the difference between the trust industry and ITFIN on investors, underlying assets and risk management. It discusses the impact on the trust industry in terms of marketing channels, financial medium and risk management functions.Section3: Introduces the innovation in ITFIN for Trust Industry, take consumption trust as an example.Section4: It examines the issues resulting from financial regulations and infrastructure when trust companies try to leverage internet finance, and also explores the likely futures trends for the Trust industry and internet finance.