Study on Conflicts and Integration between Internet Finance and Traditional Finance

With the support of financial deepening and financial disintermediation theory, the Internet finance has been on a right track gradually. The "new financial intermediation" theory has promoted the development of Internet finance, compared to the traditional finance where it is involved in hot competitions; it has been gradually transitioned to a stage of mutual integration and complementation. The Internet-based finance makes use of big data and cloud computing to solve the information asymmetry, which has reduced financial transaction costs and improved financial efficiency; owning comparative advantages in the long tail client and the fragmented financial channels. While the rich experience of traditional finance in risk management and capital operation set a solid foundation for the stable development of the financial industry. Traditional financial credit, strong capital strength, integrated to the technique, transmission and costs of Internet finance, relying on the online data mining, process and computing and offline assistance in decision making have jointly promoted the healthy and stable development of the financial systems in China, and provided financial support for the economic transformation and the adjustment of economic structure in the country so as to achieve a stable economic growth.