The Influence of the Network on the Financial Market: Taking Financial Intermediaries and Internet Finance as Examples

Abstract

The article investigates the impact of financial intermediaries and internet finance on financial markets. By comparing the existing research data and materials, this paper analyzes the advantages of financial intermediaries in dealing with information asymmetry, controlling credit risk, capital allocation, and conversion. The research shows that both the advantages and disadvantages of financial intermediaries affect financial markets to some extent. The author also found that with the development of search engines and social networks, the rise of Internet finance has a significant status in promoting the efficiency of resource allocation. The results are supported by data generated from previous studies and are consistent across both internal and external conditions. From both positive and negative aspects, the influence of social networks and informatization on financial markets can also provide a positive reform effect on networks and financial intermediaries and put forward some further ideas. Furthermore, based on the analysis, the author also puts forward some measures to utilize financial intermediaries and internet finance.