The Impact of Internet Finance on the Efficiency of Financial Resource Allocation

Zhaoyan Guo ()
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Zhaoyan Guo: Qingdao Chengyang District No. 1 Senior High School

A chapter in Proceedings of 2025 2nd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2025), 2025, pp 343-351 from Springer

Abstract: Abstract Based on literature and case studies, this paper studies the impact of internet finance on the efficiency of financial resource allocation in China. In the traditional banking system, due to information asymmetry between banks, enterprises, and consumers, as well as transaction costs of bank loans, financial resources may not be effectively allocated. However, under Internet finance, the application of big data has greatly reduced the degree of information asymmetry; At the same time, the application of data algorithms reduces the cost of manual loan review and lowers transaction costs. Therefore, Internet finance can improve financial allocation efficiency. This paper takes Ant Financial, China’s largest internet financial platform, as an example to sort out how internet finance can improve the efficiency of resource allocation. The article found that Ant’s deposit and loan business has high allocation efficiency and provides financial support for the development of small and medium-sized enterprises and farmers.

Keywords: Internet finance; Financial efficiency; Big data; Ant Financial (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-752-6_36

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DOI: 10.2991/978-94-6463-752-6_36

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