Comparative Analysis And Prospect Of Internet Finance And Traditional Banking

Following with the rapid development of internet wealth management services, third-party payment, peer-to-peer lending which are relying on the Internet technology, great changes have taken place in the area of financial in this country. Internet financial quickly occupied the market and forced the reform of traditional banking for the features of universality, mediation, low cost which wins broadly recognition of people and society. Internet financial has become an indispensable part of our financial system, an important financial tool under the background of"The Belt and Road Initiative" plan and "The Internet plus" conception.With the rapid development of internet financial, the traditional banking faces great threatens due to the lack of the national regulatory mechanism and the imperfect laws and regulations which is increasing the local instability of our country's economic market. In the long run, it will push the Internet finance and traditional Banks into the unhealthy development situation. The in-depth comparative analysis of the internet financial and the traditional banking, and do the corresponding suggestion and prospect is necessary for the above statement.This paper takes internet financial and traditional banking as the research object. Firstly, we build functional model about the traditional banking and the internet financial to describe the characteristics of them.Secondly, according to the association analysis model, we do the comparative analysis of internet financial and traditional banking including five dimensions as below, the size, the user distribution, risk control, financing efficiency. On the basis of comparative analysis, we analyze the reasons of the differences in order to avoid unhealthy competition, quickly reached the balanced point. Lastly,according to the analysis of the development trend, this paper paint the development blueprint of them to build an inclusive financial system in which the internet financial do better help in the financial reform.