The Important Role of Enterprise Innovation in Internet Finance

Internet finance or P2P is developing vigorously by virtue of internet. Nowadays, there are more than two thousand internet financial platforms in operation in China, among which you can see some bizarre platforms which obtain a transaction amount of 20 billion Yuan within just 30 days, and also newcomers who just hit 100 million Yuan transaction amount. The practitioners entering this industry also have a variety of backgrounds, including people from traditional financial sectors such as banks, entrepreneurs from other industries trying to seize the opportunity to solve financing problems in their industries, and technology innovators from internet companies. These people stand out and set up one after another internet financial company, determined to make financial services accessible to every user via internet.

I am now working in an internet financial company established over a year ago. Through this year, I have deeply felt the significant role of enterprise innovation in our company. MBA courses helped me a lot in terms of pushing innovation in business and exploring innovation spots.

In the beginning, by taking our unique advantage in construction sector, our company signed several strategic cooperation agreements with some major enterprises. With these enterprises as our core partners, we dredged the upstream and downstream funds and engaged in supply-chain finance. The asset we employed was electronic commercial acceptance drafts.

Electronic commercial acceptance draft is an upgraded version of the original paper commercial acceptance draft. Through unified electronic management on the platform, every endorsement can be traced and every draft is sole in system; breach records are shared directly with credit reporting system of banks, which greatly improves the security of electronic commercial acceptance drafts and avoids financial risks such as fake drafts and multiple financing with only one draft, and increases the financial risk where invoicing party does not cash the draft.

We get commercial acceptance drafts from downstream enterprises and utilize the reputation of upstream enterprises to raise