Internet finance can fundamentally change the Chinese financial sector and this is a very positive trend, said Wu Xiaoqiu, a finance professor at the Renmin University of China at the Ninth Beijing International Finance Expo.

Wu said the Chinese financial sector is highly monopolized, so financial institutions do not serve China's economy well.

"Internet and finance match each other well because the core functions of finance can perform better through the Internet," said Wu.

For instance, Internet payment transactions are quicker, and acquiring and lending loans can be more efficient with trading and credit records online. The Internet also helps to manage wealth and release information quickly and widely.

Wu suggested that China's regulation standards on Internet finance should be revised so it can be developed.

Internet finance saves money, is more convenient, and innovation in technology and business patterns as well as risk control are vital, said Tang Ning, CEO of Chinese leading peer to peer company CreditEase, at the China Finance Annual Forum of the Finance Expo.

Tang said Internet finance will not replace traditional finance and the two should be combined for a better financial sector.