Research on the Impact of China's Internet Financial Development on the Traditional Financial Industry

Abstract

With the development of Internet technology, Internet finance was born. Internet finance has appeared in people's sight in a new business form, which has brought significant changes to people's lives. People no longer need to go to the banks or other financial institutions' operations to handle business in a tedious way. However, at the same time, the high efficiency and convenience brought by Internet finance has also had a certain impact on the traditional financial industry. This paper will explore this issue in depth with previous studies, especially in the Chinese market where the Internet penetration rate is high. The paper defines Internet finance and its characteristics, emphasizes its convenience, low operating costs and easy accessibility, and deeply analyzes the connection between Internet finance and traditional finance, and at the end of the paper, it puts forward some policies to deal with the problems faced by traditional finance. This paper points out that Internet finance and traditional finance are interdependent, and the growth of Internet finance is realized based on traditional finance. The emergence of Internet finance has challenged and transformed traditional financial services, prompting them to undergo a digital transformation to meet the evolving needs and expectations of consumers. This study comprehensively examines these dynamics and the continued evolution of financial services in the era of Internet finance.