Internet finance in the conversion of attack and defense

Originally, the Internet finance is a domestic financial and network industry are interested in the topic, the financial industry said more vigorously. But over the past one months, internet finance has become a central topic in the Internet industry, and there has been a lot of movement in the financial industry. Just opened three months of Taobao balance treasure Money Fund, Netizen investment reached 55.6 billion, become China's largest monetary fund, accounting for more than one-tenth of the total Monetary Fund. Baidu Development of the Hundred Fund projects, due to the so-called target rate of return of 8%, also caused a stir in the market. Tencent, Sina and other unnamed Internet companies are also actively preparing to enter the market.

The provision of basic financial services on the Internet, such as payment, storage, purchase and sale of investment products, stock trading, insurance services, trust services, and so on, whether from the required network technical difficulties, or from the difficulty of financial operations, does not constitute a high threshold for entry. In fact, countries such as the United States have been doing financial services on the Internet for more than 20 years. This has not grown a very successful company, it also shows that there is no room for innovation. In a fully developed market environment, Internet finance is just a red sea. If it is not the pace of reform and opening up in the financial sector, the barriers set by vested interests, the existence of a de facto monopoly of state-owned enterprises and discrimination against private companies, Chinese Internet companies have been able to enter the field and demonstrate their prowess as early as more than 10 years ago. In the more than 10 years before the official accreditation and licensing of the Internet, it is evident that the company has adhered to the facts.

The reason why Internet finance is paid much attention today is that there exists huge market demand and urgent need of social development objectively. First of all, hundreds of millions of ordinary people with savings (most of whom are also netizens) have long endured the exploitation of ultra-low fixed deposit rates, and have been deterred by dangerous and unusual stock markets, and are in urgent need of higher returns and more convenient, safe and reliable alternative financial investment products. Second, the internet has formed a large user scale, a wide range of services, safe and reliable operation of the social environment, the need to find opportunities to make up for the weak financial services, establish a complete closed service chain, expand further development and expansion of space. Third, social development needs to further strengthen the capital market, widen the financing channels, and convert more social funds into investment capital.

Despite more than 10 years of policy protection, the financial sector's performance on the Internet platform has been unsatisfactory. Although the financial institutions have also made initial use of network channels, some existing services are developed into network services, but the overall view is that the Internet as a marketing channel and service platform, and not according to the characteristics of the Internet and the characteristics of netizens to develop a new financial products and services, nor the financial services and comprehensive network services integrated into one. In developed countries, compared with many traditional industries, the computerized and highly data-rich financial industry has been affected by the impact of the Internet tide is not high, the process of networking is relatively smooth, the network industry is not a lot of opportunity, is a balance of attack and defense situation. But in China, the monopoly and excess profits of the financial industry have become the target of criticism because of lack of innovation and insufficient service. This and the Internet to the traditional industry wave of superposition, let this wave of Internet financial impact is particularly ferocious, the attack on one side is the network industry, the defense is the financial sector, the two sides of the power of defense is very uneven, the initiative in the network industry side.

Historically, all the network industry erosion, disintegration, integration of traditional industries hereditary, the results are one-sided, the network industry, the traditional industry has been transformed. The news and information service industry has always enjoyed policy and political protection, but today the Internet has been recognized as the main platform for the dissemination of news information. Triple-Net integration was originally a game between the telecom industry and the TV business, but the result became the Internet eminence. Other things, such as entertainment and retailing, have been or are showing a one-sided picture.

Now, the voice of further reform and opening up, the financial industry orthometric. If the market entry threshold is lowered, the interest rate marketization is realized, and the private capital enters into the possibility, then the so-called internet finance will become the breach of the financial market and modernization. If policy allows, a number of internet companies can enter into financial markets in a variety of ways, such as acquiring financial institutions licences, buying stakes in existing financial institutions, collaborating with financial institutions to develop and operate various financial products and services, and so on. If we can make full use of the advantages of brand, capital, market, technology, service and mass users, the network company will be able to gain considerable space for development. Even in a few years can only intervene in some simple, low-end, small profit margins of financial services, the network industry will be happy. If there are trillions of of billions of dollars flowing into the web platform and staying in the fruits of production, it can be expected that China's financial markets will change so much.

From the Internet point of view, Internet finance is not an innovation, more with the nature of remedial lessons. But from the angle of reform and opening-up, from the angle of marketization and modernization of financial industry, internet finance has a certain innovation power. Although out of the national conditions, the impact of this wave has a considerable likelihood of being retarded, hindered, weakened, but the coming of the general will come, nothing more than a matter of time sooner or later. The financial industry should free itself from habitual thinking, get rid of the negative defensive situation, and strive to be the attacker of internet finance, at least as a joint offensive with the network industry, to create a new financial services industry.