The Rapid Rise Of China's Internet Finance And Its Impact On Traditional Finance

In recent years,with the rapid development of technology innovation such as social media,big data,cloud computing and mobile internet,the various and personalized internet financial products,for example third party payment,network credit,and internet financing,have meet the general public financial needs,and have had a rapid development in china to become a new financial mode.This new mode not only reduces the transaction cost,improves the efficiency of accommodation of funds,but also expands the scope of financial services,as well as the original financial landscape.The rapid rise of internet finance has made a huge impact on financial industry,not only the impact on traditional finance,but also the various risks and problems arising from the rapid development,which are urge to be solved.This article analyzed the background of the rapid rise of internet finance,its development status and existing risks and problems,as well as the mature experiences of foreign internet finance;discussed the characteristics and advantages of internet finance and traditional finance,concluded that internet finance had advantages such as lower cost,larger platform,greater data,and better experience,the advantages of traditional finance are better customer base,later number of bank outlets layout,more adequate resource allocation,and perfect risk management structure,etc.internet finance and traditional finance are relatively clear on areas of expertise and market segments at this stage.The rise of internet finance is more of the traditional finance supplement,and both of them have a lot to learn from each other.This article draw lesson from the experience of foreign development,combined with the domestic situation,made suggestions on how to prevent internet financial risks,and how to make compatible development of internet finance and traditional finance.