The New Model and New Rivals of Traditional Financial Industry under the Impact of Big Data

In the past year or so, every piece of small step that Internet companies have taken in the direction of finance will be a heavy drummer for media outlets in the heart of traditional financial practitioners. Some people have shown extreme importance (such as these high-level banks), while others have shown disagreement, thinking that once Internet companies get involved in the financial industry, they are doomed to escape the traditional financial model and inherent risks, how profound Innovation at all?

Before you come to your judgment, you should understand what is happening and what has happened.

Yi Huanhuan and Zhao Guodong, two analysts at Hongyuan Securities, recently made a very valuable report titled "Cross-border and Subversion in the Big Data Era - Barbarians at the Door of the Financial Sector." The report gives a detailed description and analyzes the challenges and new models and new rivals that the traditional financial industry is facing under the impact of the Internet and big data.

Background: The traditional financial industry suffered a multi-line impact

With the development and popularization of the Internet and big data, Internet companies have become more and more involved in the financial industry as a whole, and start-ups have also emerged in large numbers, striking various fields in the traditional financial industry from payment and settlement to investment and financing services to distribution Traditional financial institutions such as currency, banking, insurance, securities and funds have been spared no efforts to expand their infiltration scope and expand into the core areas of the financial industry.

Potential entrants to the financial industry are usually resorting to the innovation and progress of information technologies such as the Internet, cutting into the weaknesses of the financial industry, breaking down the original market structure through destructive products or destructive business models. In the future, through continuous upgrading of their products and Service, is likely to climb to the top of the financial industry chain.

At present, one of the important reasons for the rise of new models such as P2P online lending and online microfinance in China is that the traditional financial system in China is not efficient enough. On the one hand, it is difficult to effectively satisfy the demand for releasing large amounts of value added after the substantial increase in people's income. On the other hand, The risk control mechanism of China's traditional financial institutions has blocked many small and medium-sized enterprises, which gave birth to enormous business opportunities. With the progress of social virtualization and big data deepening, potential entrants will continue to expand their business scope. At the same time, with the rapid economic growth in China over 30 years and the promotion of national financial reform policies, traditional financial institutions will also face transformation , The face-to-face competition between potential entrants in the financial industry and traditional financial institutions will be gradually highlighted. Initially, emerging financial forces were more cooperative with traditional financial forces, but slowly began to evolve into a co-opetitive relationship with gradually larger components of competition than their counterparts.