ABSRTACT： In the era of rapid development of information technology， Internet finance has emerged and developed rapidly. Internet finance can make people and consumers in the process of using transactions more quickly and more convenient to complete the corresponding work， so the Internet finance model is more advantageous than the traditional model， and presents many advantages. Secondly， Internet finance can distribute the resources optimally， which makes the allocation more efficient， and the cost of information processing is lower than traditional finance. For traditional finance， it is necessary to explore and exploit the differences between traditional finance and Internet finance if we want to achieve sustainable and stable development， take their respective strengths and build on them so that the crisis becomes a new model of development.
　　Keywords： Internet Finance; Traditional Finance; Challenge
　　一、 The challenge of Internet finance to traditional finance
　　With the application of Internet finance， in the field of financial business， to a large extent， the decline of customer traffic in traditional finance， which makes traditional finance face huge challenges， and for Internet finance， the business that the client should transact is to be given priority to with convenient and quick， it is the client saves time maximally while achieving the highest efficiency， this formed sharp contrast with traditional finance， which indirectly leads to the decline of traditional financial customers. Therefore， in view of this situation， if traditional finance can not effectively control and retain customers and the loss of customers in a timely manner， it will lose its effective position in the confrontation with Internet finance， to be truly sustainable.
　　二、 The effective strategies of traditional finance to meet the challenge
　　If the traditional finance is to be competitive when the Internet finance is developing vigorously， it is necessary to focus on developing the characteristics and advantages of the traditional finance itself， and fully recognize the shortcomings and disadvantages of the traditional finance， in view of its insufficiency and the inferior position carries on the further optimization. And in the process of development and optimization， can not be found in time to make up for the defects and repair， so as to achieve the true sense of perfection. At the same time， traditional finance should also continuously renew and reform in the light of its own situation and the changes of the market， so as to optimize the allocation of resources to the highest， best and perfect， and make the use of funds and share the degree of an essential upgrade， further strengthen the establishment of customer data， so that the traditional financial competitiveness has an essential rise.
　　In addition， after comparing traditional finance with Internet finance， it can be concluded that traditional finance is more convenient in financing and capital processing， and has a long history of development experience， he also has a wealth of practitioners and contacts. With the help of these innate advantages， traditional finance can further develop and improve its own characteristics and mechanisms， upgrade and optimize its services in this regard， and effectively improve the quality and level of its business operations， and constantly improve their own equipment and facilities construction， highlighting the characteristics of traditional financial services themselves， and further strengthening and publicizing the credibility and security of traditional finance， to provide customers with a more complete and safe comprehensive financial services.