Economic Analysis of Core Financial Competitive Forces in the Internet age

Abstract

traditional financial entities include banks, securities firms, insurance companies and trust organizations. Internet finance, an emerging form of finance, is now snatching up the financial market at an unprecedented speed and generates strong impacts to traditional financial organizations. Against the backdrop of Internet finance, many financial businesses are completed online and personal credit records can be uploaded online to complete businesses beyond time and space, which reduces time for traditional financial businesses and saves material and human resources. Meanwhile, Internet finance gives rise to many derivatives, and the rise of third-party payment service providers and third-party lenders enriches the content of Internet finance and expands the development prospect. Therefore, it is necessary and important to research on Internet finance. To ensure the development of Internet finance requires in-depth analysis of its characteristics and problems, to propose targeted solutions and ensure quick development of Internet finance in the stable and good environment. Internet, since its emergence, has been widely used and gained rapid development. The tie between Internet and finance has furthered progress of Internet finance, realized research and development of many financial products and hence become a major "engine" of the financial industry. With the fast advancement of Internet finance, various forms of financial services including online payment, online lending and Internet insurance have come into being and matured, which made up for the defects of traditional finance, fueled the financial sector's development, and promoted economic structure upgrading. From the perspective of economics, the Internet has the power for fast development, but it is not devoid of problems. This study aims to provide solutions for problems in the development Internet finance and create a good environment for its advancement.