Winning the new financial era

Chapter 223 Robo-advisor
2016 1 Month 1 Day.

The "China Social Enterprise and Social Investment Forum" was grandly held in Beijing. Representatives of outstanding Huinongdai enterprises also attended the forum and won the highest award of the forum - "Annual Social Enterprise Award".

When Chairman Zhang Yida took over the trophy awarded to Huinongdai by the organizer, the host said with a smile:
"Comprehensive enterprise, responsible finance.

I believe that all the guests in the audience are as interested in the business model and development history of Huinongdai as I am.Mr. Zhang, please tell us a few words! "

Zhang Yida didn't refuse, how could he miss such an opportunity to show up, so he replied: "That's fine, then I'll just say a few words."

Then Zhang Yida took the microphone and said to the audience:

"Hui Nong Loan was established in June 14, and it has been a year and a half since its development.

At the beginning of the company's establishment, I set a goal: to serve 3 borrowers and lend 50 billion in three years.

Friends who have a certain understanding of the rural credit market should know how difficult it is to achieve this goal.

Lack of credit information system, difficulty in risk control, high cost of capital, large geographical cross-service...all will limit the development of rural credit market business.

Therefore, in the second half of 14, we have been exploring the business model and dare not start too quickly.

During this period, we successfully explored a set of business models in Valley County, Gansu Province.

That is to combine local industries and issue entrepreneurial loans to farmers...

With this successful model, we subsequently launched a capital increase of 10 billion yuan and established 10 Huinong small loan companies in various provinces and cities across the country.

Throughout 2015, we issued a total of 28.6 billion yuan in agricultural loans, benefiting more than 11.3 households.

The reason why the business volume has increased so much is because we have a successful model on the one hand, and we only need to copy it to other regions;
On the other hand, we are embracing the digital financial revolution, using Internet financial tools such as big data and artificial intelligence, and combining the actual needs of rural groups, we have independently developed a financial service client for the rural market - Huinongdai APP.

Huinongdai uses the mobile terminal as the carrier, supported by informatization and big data, and supports identity verification and login through "identity authentication + face recognition".

It allows farmers to realize online reservation of credit services, progress inquiry, business processing, online repayment, etc. without leaving home, which has effectively improved the customer experience.

The face recognition technology in the APP also greatly reduces the identification problem.

In addition, we have also explored a set of "five households joint guarantee" risk control model.

Through this kind of moral restraint between the villagers in the village, even if one family does not pay back, the other four households will share with each other and let them tide over the difficulties, so the risk is minimized.

In addition, Huinongdai also purchased death insurance for all borrowers to prevent borrowers from causing loan losses due to sudden death and other reasons.

The loan salesmen of Huinongdai are also selected from the local people with certain prestige and connections, which can be regarded as another kind of "localized operation landing"!

These credit clerks don't wait for business to come to their door every day. They go to the countryside every day to chat with the villagers and ask if they have any credit needs.

At the same time, they also have to undertake the responsibility of manual review, and conduct a comprehensive evaluation of the labor quality, skills and willingness of the borrower.

Whether it has production capacity, whether it has certain means of production, such as land, in short, it can ensure that the borrower can repay the loan through production activities after obtaining the small loan.

Since its operation, the bad debt rate of Huinongdai has been controlled within 0.5%, and the overdue rate of more than 30 days has also been controlled within 1%.

To be honest, I was a little surprised to be able to achieve such good operational results.

It can be seen that farmers in rural areas in China are still very honest and trustworthy.

The next step of our Huinongdai will continue to focus on the expansion of business volume and the reduction of capital costs.

While entering more areas and serving more farmers, it is also necessary to gradually reduce interest rates and provide farmers with the most convenient and favorable financial services. "

……

"Okay, thanks to Mr. Zhang for sharing, it has given us a clearer understanding of the development process of Huinongdai.

At the same time, I also wish Huinongdai to develop prosperously, benefit more users, and open up the last 100 meters of rural finance as soon as possible. "

After Zhang Yida finished sharing, the host made a concluding speech.

After Zhang Yida stepped down from the stage, Tang Lin, the elder brother who was sitting next to him, gave him a thumbs up and said, "Yida, Huinongdai's results are brilliant!"

"Haha, senior brother is overrated, and his grades are still far behind." Zhang Yida was modest, then smiled wryly:

"I made a promise of "3 billion loans in three years". Now half of the time has passed, and the progress is only 30% complete. I am a little worried, what should I do if I can't complete it?
Hey, that would be too embarrassing. "

Tang Lin's face was full of disbelief, and he said, "It's hard to beat you? Last year, I lent 30 billion yuan, this year 60 billion yuan, and next year's first half of 60 billion yuan. The total is 150 billion yuan, brother. I exceeded the target."

Zhang Yida didn't argue, just smiled, and said to himself: It's not that simple, the business volume doubles every year.

"Are your bad debt and overdue rates so low?" Tang Lin asked again.

Zhang Yida nodded: "The data are all true, and Wuhulianbao is very effective."

Tang Lin let out a long breath and said, "The difference between urban and rural areas is really huge. The overdue rate of your rural loans is only 1%. Do you know what our rate is?

10%. "

Zhang Yida shook his head and said: "The two should not be confused. The city is all about consumer finance, and the loan is for eating, drinking and having fun. The rural one is about starting a business loan and getting rid of poverty.

The borrower's mentality and performance ability are different.

And how low our interest rate is, the lowest has been reduced to 12%. "

Tang Lin stopped talking, and Yiyindai divided customers into four categories based on risk pricing, and the highest annualized interest rate reached 39.5%.Compared with Yiyindai, Huinongdai is indeed a conscience loan.

These borrowers are really devoid of conscience if they don't repay the loan with such a low interest rate.

But Yiyindai is a commercial organization, so it needs to be well-fed.Huinongdai was brought out by Zhang Yida to invite his name.

Indeed, the two cannot be compared!

"Yida, what do you think of the overseas consumer finance market?" Tang Lin asked Zhang Yida again.

Zhang Yida was a little alert, guessing that his actions to go out to sea had already attracted Tang Lin's attention.After thinking about it, he said, "It can be regarded as a wild land. The land is very wide, but there is a lack of farming tools."

Tang Lin nodded, the result of their investigation was the same.The Southeast Asian market is quite big, but the infrastructure is too poor.

Mobile payment, big data, credit system... nothing.

As Yimin Wangjin and Yiyindai are currently the only listed companies in China, Yimin Wangjin's every move is naturally observed under a magnifying glass by Yiminwangjin.

They also analyzed the operating data of Yimin Bank, an Indonesian holding subsidiary, announced by Yimin.com, and they concluded that the market is immature for the time being, and they have to delay entry.

Unlike Yimin Wangjin’s wealth and wealth, Yiyindai raised US$7500 million when it went public.

Because of the lack of funds, before the domestic memory market is fully digested, the group's internal executives are very opposed to rushing into overseas markets.

However, Yiyindai is only a small part of Yiyin Group, and their main business is wealth management.

In the wealth management sector, they have made overseas deployment early. In 2013, they set up a branch in Hong Kong, in 2014, in Singapore, and in 2015, in Israel.

This year they also plan to set up an American branch and enter the European market next year.

The goal of Yiyin Wealth Management is to become the first choice wealth management brand for global high-net-worth Chinese.

Yiyin Wealth also has a family office business. Tang Lin heard that Yimin Wealth also established a Xinhuo family office some time ago, so he asked Zhang Yida:

"Yida, how is the family office business of Yimin Wealth going?"

When Zhang Yida heard this, he remembered that the other party also had a wealth management business.Now the business of Yimin Company can be regarded as completely competing with Yiyin Group.

Wealth management, P2P, and consumer finance are mainly these three categories.

In addition, they also have a venture capital fund called Huachuang Capital, which is also somewhat competitive with Huayi Capital!
However, the domestic market is huge, and there are not one or two companies that compete with each other, but dozens or hundreds of companies.

If Tang Lin insisted on targeting him cautiously, Zhang Yida would not give in to him just because he was a senior.

Seeing him come over to "spy on information" now, maybe he just asked casually, but Zhang Yida still had a little more vigilance, and replied with a smile:

"I'm a big client, and my own assets account for most of the management share. Others' assets are basically for the sake of face, and they invest [-] to [-] million dollars for fun."

Tang Lin didn't continue to ask any more questions. He also knew that the Yiyin Group and the Yimin Department had a lot of competition now, and asking more questions might cause bad misunderstandings.

On the other hand, Yiyin Group and Ruixiang Group have deep cooperation.

Yiyin Group invests tens of millions of advertising fees in Ruixiang Group every year, which is used for wealth management and borrowing to acquire customers.

Yiyindai also purchased Ruixiang’s risk control system and connected to Ruixiang’s mung bean credit score.

So he is also very measured, and will not create a little estrangement with Zhang Yida because of a little competition, or even come out unhappy.

"I heard that you are developing robo-advisors, how are you doing?" Zhang Yida asked.

"Hehe, it's coming soon, it will be released in a few months." Tang Lin said with a smile, and then asked Zhang Yida: "You have invested so much in the field of AI, and the robo-advisor products should be doing well, right?"

Zhang Yida said with a smile: "It can be regarded as some results! The product will be officially released soon. The level of products on the market is uneven, and most of them are in the conceptual stage.

Since we are going to do it, we must do it with strong practicality. "

Tang Lin also agrees with this point of view, saying: "The United States started to rise in 2010, and our development is a few years behind. But it doesn't matter, our country has a strong learning ability, and there is still a chance to catch up."

“The most important thing is that robo-advisors are faced with policy restrictions such as licenses and regulations, and can only provide investment advice and cannot conduct carte blanche management.

If you can't get involved in the trading process, the prospects are undoubtedly much smaller. "

Zhang Yida regrets that both robo-advisors and P2P are unlicensed streakers, and they might be banned someday.

"Take your time! This kind of thing can't be rushed." Tang Lin had been on Wall Street before, and he was also very emotional about the backwardness, or defects, of the domestic trading market.

What scallops have long legs, the pigs are starving to death, and the financial accounting is wrong by tens of billions...

(End of this chapter)