Study Of The Internet Finanace Development Trend Based On Financial Intermediation Theory

The year of 2013 is the start of Internet Finance in China.In recent years,Internet Finance has developed rapidly and become a major new industry in our country.With the emergence and development of Internet Finance,there are more experts studying about it.This paper will combine theory and practice,studying the nature of the Internet Finance,advantages and development trends based on financial intermediation theory.This study has great practical significance about the development of the Internet Finance.First,after reading lots of documents and studies,this paper discusses the cause of Internet Finance,the definition and the essence of it.Then this paper presents a point that Internet Finance is a new kind of financial intermediary which matches the trend of the times.Secondly,this paper studies the status of the Internet Finance,its models and features,then analyze the advantages and thee weakness of Internet Finance according to financial intermediation theory(including trade cost,information asymmetry and risks)and compare it to the traditional financial intermediary.After we analyze the typical cases of Internet Finance,we can give reasonable advices on about the trends and directions of the Internet Finance.Final conclusion about the trends of the Internet Finance:platformdesign,providing one-stop services and open cooperative Internet Finance platform;big data,protection for the safe and effective Internet Finance services,basis for the Internet information mining and Internet Credit.This paper defines Internet Finance and its essence by binding financial intermediation theory,having theoretical significance for finance studies.The development model of Internet Finance helps to analyze the characteristics and advantages of internet banking.This paper presents developing trends of the Internet Finance,which has practical significance.