Internet financial knowledge and micro-view

The third industrial Revolution, centered on digitalization and the Internet, is reshaping the boundaries and business models of many industries. The financial Internet has shown huge market space in China. This is a new financial model with the help of Internet technology, mobile communication technology to realize financing, payment and information intermediary business. The combination of Internet and finance is one of the most new efficiency tools and one of the oldest exchange activities, and the organic combination of the two will bring about a subversive change in the financial field.

The essence of finance as a kind of exchange activity is value circulation, the core is the exchange of value across time and space, all the transactions involving value or income are allocated in different time and space. Liquidity is a very important element in this process, and the efficiency of the Internet has greatly improved the mobility. At the same time, the Internet promotes the digital existence of ordinary users while breaking through the space-time boundary. These two points form the basis of broad Internet finance.

Personal Internet Data Portrait

Financial products in strict sense is the data, the data on the Internet to achieve the payment, and then the number of matching, deadline matching and risk pricing, from the perspective of Internet finance logically. But the most important data that the Internet brings to finance is complete and trustworthy user data.

The birth of large data strengthens the internet's handling of individuals. The internet has not only become an important part of modern life, in essence, it is the basic service of modem life, all products and services can complete the precipitation and circulation of information through the network. Along with this is the individual information, we have the keyboard or the mouse every time the impact of the message will be defined on the network account with an accurate correlation. Unlike people, the Internet has no forgetting mechanism, relies on the computer, it has the formidable storage and the record ability. As a result, the user's individual characteristics, geographical location, friends network, personal data, browsing habits, consumer preferences, shopping, credit records, etc. will become the information flow, the individual into the digital existence of the internet world. The fact is that every person from birth to death, each person's behavior information, will be precipitated into the network of data information, and this data, through the search engine, through large data can be queried at any time, which constitutes the Internet financial information base.

This strict to personal portrait of information acquisition, in the absence of the Internet can be done, as long as the investment of sufficient human and material resources, you can do a full investigation of a person. But this kind of due diligence means a lot of investment, and it also determines that traditional finance relies heavily on elite users, while internet finance can serve the public at a very low cost.

Efficient service for small micro customers

Financial products rely on the internet to break through the boundaries of time and space, this is now the general physical outlets do not. In the history of financial development, the invention of ATM can be considered as an epoch-making creation, ATM is to minimize the space and time limit in the physical level. Financial products are trading behind, transactions need to pay transaction costs, including trust, institutions, payments, time and so on, the Internet runs through all relevant links. The financial model relying on Internet can produce huge benefit, can achieve the same resource allocation efficiency as direct and indirect financing now, and reduce transaction cost greatly while promoting economic growth. More importantly, in the Internet financial model, now the division of Finance and specialization has been greatly diluted, by the Internet and its related software technology replaced by the more popular market participants, the Internet financial market exchange caused by the enormous benefits of ordinary people.

The bank's traditional retail business focuses on consumer finance, for example, credit cards, personal finance, and so on, our daily contact with the Business Hall Services, ATM, online office and other businesses are personal business, with the broadest group, but this is not generally the center of the banking business, its focus is mostly on the non-retail business-deposit and lending. In the field of lending, banks favor big customers, large customers have high borrowing, can effectively spread the services and wind control costs, so the bank attaches great importance to customers, small micro-customers are particularly ignored. It is very difficult for individuals to get loans from banks, which is why Internet financing loans can grow fast, and the Internet can serve small, micro clients that banks are unwilling to serve, the most widely targeted group of internet finance.

It can be believed that one day the money will be completely digitized, even in the form of Internet money, which should be the higher order state of internet finance. The impact is not only on existing commercial banks, insurers, securities companies, but even central banks (Shenlu).