China Is Fertile Ground for Growing Internet Finance

The recent establishment of private Internet banks has ushered the banking industry into an era where banks need no brick-and-mortar offices. Technologies like big data make this possible, yet there is disagreement over how much potential Internet finance has.

We have often heard financial experts say that it is not a big deal. Some point out that the United States does not have an extensive Internet finance network, and what China has is a phenomenon involving regulatory arbitrage that will bust like a bubble once financial regulations are tightened and improved.