The Research On Internet Financial Development In China Based On The Theory Of Financial Function

Internet Finance is the emerging field that combines the traditional financial industry and Internet technology.In recent years,the Internet Finance has developed rapidly in those aspects,such as customer quantity,transaction scale,business model,payment mode,information technology and so on,and plays a important role in boosting consumption and investment and optimize resource allocation.Internet Finance has become a new economic growth pole in China,and promotes transformation in the entire financial system.But the development of Internet Finance brings a lot of problems in those aspects of internal trust,information safety and business risk.So,there is great important of theoretical and practical significance to construct an comprehensive index to measure the level of Internet financial development in China,discuss the existing problems in this process and propose countermeasures to promote the sustained and rapid development of Internet Finance.Based on analyzing and summarizing the traditional theory of financial function combined with the unique characteristics of the Internet finance,this paper proposes payment mode,resource allocation,risk control and information processing are the basic functions of Internet Finance.And find that the orderly and coordinated development of the four basic functions is the internal logical basis for the healthy development of Internet Finance.Next,investigate the realistic of Internet Financial development.Then,this paper construct an index that reflects the development of Internet finance,including payment mode,resource allocation,risk control and information processing.Then according to the order degree and synergy degree model,this paper carry out a comprehensive estimate about China’s Internet financial development level from 2007 to 2015.The results show that the payment mode,resource allocation,information process and Internet development promote the development of Internet Finance.But the level of risk control is the key factory that leads to a slow rise then an explosive increase for Internet Finance.Therefore,to better promote Internet financial development should take into consideration of both the order degree and synergy degree,specially control and decentralize the financial risks.Finally,this paper analysis the reasons which lead to those problems above and propose countermeasures from macroeconomic environment,the Internet infrastructure,supervision and management system,credit system and Inter-disciplinary talents those five aspects,in order to promote the healthy development of Internet Finance.