Internet finance (IT-FIN) is the organic combination of Internet technology and financial functions, relying on big data and cloud computing, the formation of a functional financial industry and its service system on the open Internet platform, including the financial market system based on the network platform, financial service system, financial organization system, financial product system, and the Internet financial regulatory system, etc., and has a financial inclusion, platform finance, information finance and fragmented finance, etc., which is different from the traditional financial financial model.

Expression: crowdfunding, P2P lending, third-party payment, digital currency, big data finance, information-based financial institutions, financial portals and so on.

Features (compared with traditional finance, the advantages of Internet finance):

One, low cost

In the Internet financial model, the supply and demand of funds can complete the information screening, matching, pricing and trading by themselves through the network platform, no traditional intermediary, no transaction costs, no monopoly profits. On the one hand, financial institutions can avoid the capital investment and operating costs of opening business outlets; on the other hand, consumers can quickly find financial products that suit them on an open and transparent platform, weakening the degree of information asymmetry and saving time and effort.

Two, high efficiency

Internet financial services are mainly handled by computers, the operation process is completely standardized, customers do not need to wait in line, the business processing speed is faster, the user experience is better. Such as Ali small loan relying on the credit database accumulated by the e-commerce, after data mining and analysis, the introduction of risk analysis and credit investigation model, merchants from the application for a loan to the issuance of only a few seconds, the daily average can be completed 10,000 loans, become a real "credit factory".

Three, wide coverage

In the Internet financial model, customers can break through the time and geographical constraints, looking for financial resources needed on the Internet, financial services are more direct, the customer base is broader. In addition, the customers of Internet finance are mainly small and micro-enterprises, covering some of the blind areas of the traditional financial industry's financial services, which is conducive to enhancing the efficiency of resource allocation and promoting the development of the real economy.

Four, fast development

Relying on the development of big data and e-commerce, Internet finance has seen rapid growth. Taking Balance Treasure as an example, Balance Treasure has been on line for 18 days, with the cumulative number of users reaching more than 2.5 million and the cumulative transfer of funds reaching 6.6 billion yuan. According to reports, the size of the balance treasure 50 billion yuan, becoming the largest public fund.