Abstract: This paper analyzes the core idea of Internet finance (IF), the internet characteristics behind IF, and the changes and not-changes of IF toward traditional finance. We argue that IF behaves as financial innovations under the circumstances of Internet technology and Internet environment. The characteristics of IF involve virtual community, mobile connections, social network, freedom sprite, and big data. IF brings transformations in the traditional finance industries, such as financial institution's physical existence, fund circulating rate, financial market structure, institution's investment strategy, credit evaluation methods, and competitive strategy. However, Internet finance does not change the basic function of finance, and it is just an innovation IT technology imposed to traditional finance and it is a kind of historical phenomena. So neither shall we refuse and deny it nor shall we overstate it.