The Impact Of Internet Finance On The Income Distribution Gap

Since the reform and opening up,China's economic development has made great achievements,greatly improving the people's living standards and also increasing the scope of people's choice.But the phenomenon of widening income distribution gap can not be ignored.In 2015,the Gini coefficient of national income was 0.462,which was higher than the international income gap warning line 0.4.Under the goal of building a moderately prosperous society in 2020,narrowing the income gap has become the key.The factors that affect the income distribution gap include economic factors,institutional factors,financial factors and so on.Finance plays a more and more important role.In this regard,the United Nations has proposed the establishment of a Pratt&Whitney financial system in 2005,designed to provide financial services for vulnerable groups of financial ideas,programs and security measures to narrow the gap in income distribution.Internet banking because of its low transaction costs,access to the threshold is not high,the audience is more extensive and so on,with inclusive financial nature,by many countries and the government's attention,China is no exception.Since 2007,the rapid development of China's Internet banking,in 2014 was called the first year of Internet banking.However,the rapid development of Internet banking process,there are some disorderly competition,or even damage the interests of vulnerable groups.Theorists and practitioners began to re-examine the role of Internet banking to reduce the income gap.For this,based on the financial function theory,the integrated use of the research method of qualitative and quantitative analysis and comparative analysis,case analysis,in-depth analysis of possible ways to narrow the income gap from the Internet financial theory,and analyze the financial impact of the Internet on the income gap between the empirical study of China.According to the people's Bank of China Internet financial report,is the combination of Internet and finance,through Internet technology and mobile communication technology financing,payment and information intermediary function of the new financial model,can be divided into narrow and broad.Internet companies to carry out,based on Internet technology is the narrow sense of the Internet banking finance,Internet banking and financial services also includes extensive Internet business.Internet banking can usually be classified as network payment,P2P lending,the congregation raised the Internet,non P2P small loans,Internet insurance,Internet banking,etc..In this paper,the study of Internet banking refers to the narrow sense of Internet banking.In this paper,we find that the financial function is not fully developed,the information asymmetry and the credit evaluation dilemma.Internet banking through the Internet technology and mobile communications technology to alleviate the financial information asymmetry,credit assessment difficulties,reduce the asymmetry of financial information,improve the efficiency of credit evaluation,and reduce the financial barriers,improve the availability of Finance for low income groups,increase the income of low-income groups,narrowing the gap of income distribution.This paper argues that in the field of finance,P2P,non P2P microfinance loans to low-income and rural families,expand financing channels,reduce the financial barriers and accelerate the speed and reduce the cost of financing loans,raise public financing for entrepreneurs to expand the financing channels,speed up the speed of financing.In the field of investment,P2P lending,Internet insurance,Internet banking to increase the income of low-income people,expanding the income of non monopoly industries,expanding the regional investment income.In the field of information intermediaries,Internet banking reduces information asymmetry and ease the plight of credit evaluation.In the field of payment,Internet banking by reducing the cost of payment and massive service customers,reducing the cost of service,while reducing the cost of payment of low-income people.In this paper,it is also found that the Internet has reduced the financial threshold,increased the financing channels,and increased the returns of investors through its own technological advantages and unique patterns.The reason is that the Internet financial information asymmetry,improve the information structure,while improving the efficiency of credit rating and credit rating of low-income groups,and improve the efficiency of resource allocation.The case analysis proves the supplement and perfection of Internet finance to financial function theory.Finally,based on the two perspectives of regulating the healthy development of Internet Finance and preventing Internet financial risks,this paper puts forward corresponding policy recommendations from the government,industry(enterprise)and consumer level.