Analysis on the characteristics of internet finance

Internet finance refers to a kind of financial business that realizes financing and sharing information through Internet tools such as cloud computing, search engine and so on. In terms of scope, Internet finance includes three major types of corporate companies: financial intermediaries, third-party payment companies, and online banks. So what are the characteristics of Internet finance?

First, high efficiency

The Internet financial business mainly relies on the computer, the whole process is completely standardized, the error rate is very low. As a result of computer processing, customers do not need to wait in line, so the customer experience is very good.

Second, low cost

Due to the avoidance of huge labor costs, the cost of the Internet financial platform is lower, but the upfront investment is larger. At the same time, the fast and direct Internet model has greatly reduced transaction costs.

Iii. Wide Coverage

Under the mode of Internet finance, both sides of investment and financing can break through the limitation of time and geography, and find suitable products or demand in the largest range. In addition, the Internet finance covers a large number of small micro-enterprises, conducive to the development of national real economy.

Iv. Rapid Development

Thanks to the continuous development of e-commerce and big data, internet finance has grown rapidly. For example, there are over 1400 peer-to-peer platforms across the country, with an increase of over 80% over the same period.

Five, weak management capacity.

Weak management ability is mainly embodied in the wind control, internet finance is not involved in the People's Bank of China's credit system, and now the Internet financial enterprises are fighting each other, only emphasize competition, do not emphasize cooperation, so far has not established an information sharing mechanism.

To sum up, the internet finance as a country's future pillar industry, the development prospect is huge, but there are many loopholes, need to perfect in time.

Analysis on the characteristics of internet finance