The Internet has receded and fintech has entered a new cycle

As finance itself begins a new evolution, we are seeing a new beginning of its deep integration with technology. Under such a profound change, finance is no longer an independent existence of the real economy, but has truly become a deep integration with the real economy. It can be said that finance has found another new way and method to return to the real economy. This is almost as true for traditional financial institutions as it is for new Internet players.

In the past, when talking about the return of finance to the real economy, people first thought of the financial industry through the traditional way to support the real economy. Although such an approach can bring some momentum to the development of the real economy, however, in such a case, finance is still finance, and it has not really realized the deep integration with the real economy. Even in the Internet era, such a situation has not changed much. Even under the amplification of the Internet model, the separation between finance and the real economy gradually deepened.

When such a development trend intensifies, what we see is that finance, especially the so-called new species of finance derived from the Internet model, is completely reduced to a way and means of harvesting traffic. When it still has the efficiency of harvesting traffic, the new species of finance of Internet style still has certain development potential. However, when the traffic peaks, especially when the Internet era fades away, such a so-called new species of finance will still encounter various development difficulties and problems. The reshuffle of Internet finance that we see later is basically born in such a big background.

To be sure, Internet finance is by no means a new financial model in the true sense, let alone a lasting momentum for the development and evolution of the financial industry. When it becomes less effective at capturing traffic, it’s back to square one. What we are seeing now is a new evolution of finance, it is in such a big background.

The Internet is fading, and finance is evolving

In the past, the argument that “the end of the Internet is finance” has been repeated. One of the important reasons for such an argument is that almost all Internet companies, especially the leading Internet companies, are engaged in finance, and almost all regard finance as their must-do “business”. Delving deeper into the reasons, it’s not hard to see that the capillaries of finance really make it the ultimate tool for connecting with traffic.

However, as traffic is sliced up, and especially as the Internet loses its usefulness in driving efficiency growth, what we’re seeing is a growing focus on new technologies, new species, and new models. In this case, the role of Internet finance as a tool to harvest traffic began to fail. For finance to work again, a new evolution is necessary.

If we have to find a footnote for such a new evolution that is taking place today, it is undoubtedly the most worthy of our attention to return to the entity, enabling entity, and truly play the function and role of the supporting entity and enabling entity of finance. In order to achieve this, if only according to the traditional financial model, financial form, financial function, it is bound to be impossible. This can only happen if there is truly deep and radical change in finance itself. Therefore, if we have to give a summary of the new evolution of finance, it is no doubt more appropriate to really change finance itself and find the right way and method to combine finance with the industry.

What we are seeing, then, is a deep integration of the financial industry with new technologies and new models. In such a process, the internal elements, operating logic and functions of the financial industry have undergone a profound and thorough change. It can be said that today’s finance is no longer the finance we knew before. If we see finance in the past as a way for Internet players to acquire and harvest traffic, then today’s finance has lost that meaning and opened up a whole new development.

If I have to sum up the current finance, I think it is more like a new type of infrastructure. What it undertakes is not only the function and effect of finance in the traditional sense, but also the function and effect of finance in the new economic era. In my opinion, only with such functions and roles can finance sustain its development. Only with such functions and roles can finance truly get out of the mire of traditional finance and Internet finance and enter a completely new stage of development.

In the new cycle, the reunderstanding of finance

At a time when finance itself is undergoing a profound and radical change, we need a new understanding of it. Only in this way can we really find the right way to develop finance. Without such a new understanding, the so-called development and evolution of finance will still fall into a new dead end if only the past logic, mode and method are used to develop.

Finance is not just tangible and isolated. If finance is just finance, then finance is bound to lose its maximum function and significance. This point, no matter in the era of traditional finance, or in the era of Internet finance, basically has been proved. If in the new cycle, we need to have a brand new understanding of finance, finance is not only finance, undoubtedly is the most important aspect worth our attention.

In the author’s opinion, finance is not just finance. The most crucial point is that we should not just regard finance as an isolated and separated existence, but as an existence that needs to be combined with the real economy. In the final analysis, it is necessary to constantly look for ways and methods to combine finance with external industries, and give full play to the functions and roles of finance through continuous combination.

When the performance of finance is no longer finance itself, when the function of finance is no longer finance itself, its function and role can be maximized. The development of the financial industry can be brought to a new stage of development only by turning the tangible into the intangible, changing the isolation into the integration, constantly returning finance to the foundation and industry, and constantly reflecting the function of finance on the empowerment and transformation of the real economy. Without this, no matter how advanced the new financial model is, no matter how new the financial model is created, it will still fall into the dead end of traditional finance and Internet finance.

Finance is not just episodic or phased. If we have to make a summary of the finance in the new cycle, it is no longer just a stage of existence, it is no longer a fragmented function, no doubt is the most appropriate. Looking at the practices of today’s financial players, it’s very clear that players are more focused on the long term, more focused on whole-process enablement.

In the author’s opinion, only by enabling and transforming the whole process of the financial industry with the real economy, only by connecting the whole process with the real economy, and only by giving full play to its own functions and roles in the whole process, can the essence of the financial industry be maximized. On the other hand, such a return to the whole process and the whole link of the financial industry can actually give full play to its function and role of empowering and transforming the real economy.

Therefore, we might as well boldly imagine that in the future, those new financial players who can really make a difference in the new cycle must be those players who can realize the deep integration of the whole process and the whole link with the industry and the real economy. Players who simply follow the traditional logic, who only want to play the role of finance in certain segments, certain processes, will not be able to develop. This, we can see some clues from the players represented by Jingdong. Observing the development pattern of these players, we can clearly see that the future of finance will be more towards the whole process, the full link supply chain financial development model, new direction.

Finance is not just a single, traditional thing. In essence, the Internet era has not brought fundamental changes to finance itself. Finance is still the same finance, and the form of finance is still traditional. It is just that Internet players move their sales channels to the Internet. In the end, finance is still monolithic and traditional.

When the new cycle comes, and especially when finance itself begins to undergo a deep and radical transformation, what we’re seeing is the beginning of a deep transformation in finance. What we are seeing is the advent of a twinning and evolution of finance. Under such a situation, the performance of finance is no longer a single, traditional and primitive as we have seen before, but metamorphoses into a new form, new species and new mode.

Finance is now much more digital. We can feel this very clearly both in its form of expression and in the way it empowers and transforms. Led by the digital currency, the financial industry will open a new wave of digital. In this new wave, finance began to become rich, diverse and modern.

With such a new evolution, the financial industry can really find new ways and methods to combine with the real economy and the real industry that have undergone the evolution. Only when the financial industry finds a new way to combine with the real economy and the real industry can the financial industry truly return to the entity. Otherwise, the so-called return to the entity and enabling entity is still just a concept and slogan.


There is no doubt that a new evolution of finance is taking place in the financial industry. If we must find a footnote for such a new evolution, the ebb tide of the Internet, the advent of the digital age, is undoubtedly the most can not be ignored. Only by recognizing the new evolution of finance in the new cycle and finding the new direction of financial evolution, can we truly break out of the vicious circle of traditional finance and Internet finance and bring the development of finance industry to a completely new stage of development.


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