Dr. Alex Dong's Blog

Internet Finance Series 2: Components


Nowadays various of financial vocabularies arise on-line suddenly such as P2P, Oil exchange, Foreign exchange, crowd-funding, share, etc. This is most hot in current China due to the depression in real estate and traditional industry. But have you prepared to meet this trend and find the chances from them? In this series articles, I will discuss some fundamental knowledges and skills we need to learn if we want to move into internet finance area. In this article, we will discuss the Internet Finance Component.

Internet finance components consists of:

  • Infrastructure
  • Created product
  • Allocate System
  • Results

In the following sections, we will discuss them in details.

Internet finance infrastructure

Internet finance infrastructure includes: cloud, network and access devices.


Traditional software problems: the arise of cloud is due to the traditional software problems:

  • Platform: traditional software should have different platform versions such as unix, windows or mac.
  • Hardware: traditional software has minimum hardware requirements such as 3.6GHz CUP, 8 G memory.
  • Language: the integration of software written in different computer languages is difficult.

Cloud computing:  the key idea of cloud computer is throwing the computation task to the remote servers. Hence it can solve the mentioned software problems. Users just need to throw the request, the server will give the answer about the requests. All the computation is conducted in the server side.


Internet: Chinese internet user 6490 millions, mobile internet user 5570 millions (2014)
Wireless sensor networks: $1.9 billion(2013), $7.1 billion (2020)

Access Devices

PC:  Pc is the traditional information access method.
Mobile device: Chinese smart phones 2580 m/ 33% (2012), 4534 m/ 50%(2013)
Wearable device Sensors:  people start to use wearable device sensor to collect and share information such as google glass and apple watch.
App: Google play and apple store 50 billions downloads in 2013 and more than 1 million apps

Created product: Data

  • Data Driven Application
    • Financial trading data
    • E-commerce trading data
    • Data Product : accurate advertisement
  • 13% data from China (2012)
  • 21% data from China (2020)

Allocate system: Social collaboration

  • Small and beautiful company
  • Integration between produce and consume
  • Dynamic collaboration
  • Various jobs

Result: Industry 4.0

The result of internet finance is industry 4.0. Industry 4.0 is compared with Industry 1.0, 2.0 and 3.0.

  • Industry 1.0: industry 1.0 is the mechanization. The key indicator is the invention of steam engine.
  • Industry 2.0: industry 2.0 electrification.  The key indicator is the application of electricity.
  • Industry 3.0: industry 3.0 is  automaton. The key indicator is the the usage of PLC.
  • Industry 4.0: industry 4.0 is in informational. The key indicator is the application of Artificial Intelligence and Sensor networks.  Industry 4.0 optimizes the resources and the requirements by using the information technology and sensor networks


adminInternet Finance Series 2: Components