The Impact Of Internet Finance On Traditional Banking

In the year of 1760s, the eruption of British Industrial Revolution opened a new chapter for people. Nowadays in the 21st century, the financial industry as the core of the modern economy has also been baptized by the Information Technology Revolution. The combination of the Internet and financial industry triggers the birth of Internet of Finance (IOF for short). With the rapid development of information technology and mobile communications services, the Internet companies never suspend their business with financial industries by purely providing information technology service of them. On the contrary, by taking the advantages of cloud technology and big data, they walk through "the background" into the "front ground" and the combination with traditional banking business forms a new and rapidly developing field, that become a new hot spot for people to discuss and research. Based on the origin and development of Internet banking process, from the point of view of the financial function view draw, Internet banking company, with its advanced technology, in the payment and settlement, data mining and financial intermediation, play credit risk management and other functions, compared to the traditional banking industry, more efficient, cheaper and stronger customer experience. But deeper analysis, the impact of Internet finance more innovative channels of financial services and technology, the impact of intellectual level. For the traditional banking sector in the long term evolution of the available money creation, part of the reserve system and the existing laws and regulations and improve the regulatory system recognition function, Internet banking company in the short term is difficult to break through. Thus, the Internet and traditional banking financial companies should learn from each other, enhance cooperation, and jointly to optimize the efficiency of our financial resources to achieve inclusive finance, gathered Ethnic Areas poverty and other issues play a catalytic role. Meanwhile, the financial supervisory authorities should actively face of changing financial development by the Internet brought financial environment, to take the market a new regulatory philosophy, strengthen guidance to the public, to prevent systemic risk.