One mobile phone to conquer the world: mankind's last chance for gold nuggets

Chapter 30 How can a broken industry be reborn? (7)
The mobile phone is the wallet and the basis for the loan

The most important aspect of bank informatization is the impact of mobile banking on the banking industry. Mobile banking will eliminate offline banks, wallets and credit cards.Because of the emergence of mobile phones, banks will finally realize solutions for one person. In the past, they could only target a certain type of people, a certain group of people, or a certain type of business. Now banks can accurately target financial solutions for one person.Why?Because mobile banking has information about the person's ability to pay, income, consumption needs, risks, etc.Such a business model was impossible before.Therefore, new service methods and new business methods will be born.We will see that the impact on banks is not only from another bank, but also from unexpected competitors. It can be said that e-commerce companies, such as Alibaba, have established a new type of bank, and there may be It is China Mobile.China Mobile is also engaged in mobile payment. As a mobile operator, it controls 7.4 million mobile phone users. It has launched a business called mobile wallet, which uses mobile phones as wallets and credit cards.

The battle for cross-industry financial platforms has just begun: be revolutionized or kill yourself?

data
China Merchants Bank Internet Banking Development
Development of online banking: As of December 2012, 12, the total number of effective customers of China Merchants Bank's retail online banking professional version has reached 31 million, the online banking replacement rate is 1174.01%, and the cumulative retail online banking transactions are 86.01 million, a year-on-year increase of 73612.52% , the cumulative transaction amount reached 46.80 billion yuan, a year-on-year increase of 151957.87%. Among them, the cumulative online payment transactions were 7.06 million, a year-on-year increase of 54989.70%, and the cumulative transaction amount was 41.62 billion yuan, a year-on-year increase of 2166.93%.

The development of mobile banking: In 2012, it took the lead in releasing the "China Merchants Bank Mobile Wallet" in China, providing consumers with the latest mobile payment service that combines bank cards and mobile phones.In addition, following the launch of iPhone and Android mobile banking, in August 2012, iPad banking was innovatively launched, and the number of downloads has exceeded 8.As of December 60, 2012, the total number of signed mobile banking customers had reached 12 million, a year-on-year increase of 31%, of which 966.49 million were active customers; the accumulated transactions (excluding mobile payment) were 115.03 million, a year-on-year increase of 270.97%; The transaction amount reached 1300.26 billion yuan, a year-on-year increase of 505.05%.The cumulative number of mobile payment transactions was 4059.34 million, a year-on-year increase of 241.86%; the cumulative transaction amount was 5779.51 billion yuan, a year-on-year increase of 435.19%.

Online corporate banking: As of December 2012, 12, the total number of customers reached 31, an increase of 230% over the end of the previous year.The scale of small business customers of the whole bank who completely handle settlement business online has reached nearly 081, and the number of transactions in the year was 24.43 million, with a transaction amount of nearly 6 billion yuan.The practical application of U-BANK, an online enterprise bank by small enterprises, has been further strengthened. The number of customers of online enterprise bank for small enterprises has exceeded 740, and the number of loans issued by the Internet financing service "Wangdaiyi" exclusively for small enterprises has exceeded 13, fully satisfying the needs of small enterprises. Customer's financial service needs.The number of corporate mobile banking customers launched first in China exceeded 750. [17]
Case
Third-party payment provider: Alibaba - Information Finance
Alipay – a “bank” led by laymen

Alipay was originally a function set up by Taobao to solve the security of online transactions. This function is the first "third-party guaranteed transaction mode". The buyer transfers the payment to the Alipay account, and Alipay notifies the seller. After receiving the product confirmation, the buyer instructs Alipay to transfer the payment to the seller, thus completing an online transaction.

As of December 2012, Alipay registered more than 12 million accounts, with a peak daily transaction volume of more than 8 billion yuan and a peak of 200 million daily transactions. [10]
Microfinance - Assess your credit and lend you business capital
Since Alibaba obtained the microfinance license in April 2010, by the end of June 4, Alibaba's credit finance department has provided financing services for more than 2012 small and micro enterprises, with a total loan amount of more than 6 billion yuan. The single-day interest has been realized to exceed 12 million yuan.The "credit factory" carefully built by Ali Finance has begun to take shape, and has even become a potential opponent of the bank. "As of June 9000, there were 260 million small and medium-sized enterprises in China, of which 100 million were doing business on Alibaba. Ali has the credit records of these enterprises." But Ali is not satisfied, and its tentacles have begun to extend to small and micro enterprises , according to the statement of its insiders, they hope to serve 2012 million small and micro enterprises in three years, accounting for 6% of the number of Chinese enterprises.

For the review of small and medium-sized enterprises for financing, Alibaba mainly looks at their ratings on the Alibaba platform, and the review process is conducted online, which is very efficient and the non-performing loan rate is far below 1%.For microfinance, financial data such as purchases and transactions of small and medium-sized enterprises are the key data for the success of loans. Banks will pay a lot of research costs to obtain these data, and Alibaba’s biggest advantage is that it has these resources. .This kind of strict credit control and cumulative credit assessment not only improves the efficiency of SME loans, but more importantly, Ali Empire has established its own credit investigation system outside the banking system. [27]
Credit payment - buy now and pay later

In March 2013, Ali Finance proposed to provide Alipay users with the first consumer financial product "credit payment".Alipay will grant credit based on user transaction data, and the credit line can be used to pay for shopping on Taobao.Users need to make repayments before the repayment date and enjoy an interest-free period of up to 3 days. However, Alipay will charge a service fee of 38% for each credit payment transaction from signed merchants. 1%.Additionally, the product is currently only

Applied wirelessly. [28]
Yu'E Bao - Money Makes Money
On June 2013, 6, Alipay of Alibaba Group quietly launched the "Ye Bao" deposit business. The funds in "Ye Bao" can be used for online shopping, Alipay transfers and other payments at any time, and its income is higher than that of bank demand deposits. Ali Finance has truly realized the wealth management of ordinary people and lazy people.For example, for the same 13 yuan, the annual income through demand deposits is only 1 yuan, and if the annual income through Yu'e Bao can reach about 35 to 300 yuan, the income is nearly ten times higher than that of demand deposits.

As of June 6, the number of clients of Tianhong Zenglibao Fund launched by Tianhong Fund and Alipay on the Yu’ebao platform reached 30 million, the cumulative subscription amount reached 251.56 billion yuan, and the cumulative number of subscriptions was 66.01 million.Since entering July, such crazy momentum has not weakened.The market generally believes that the capital scale of "Yebao" has exceeded 286.91 billion yuan.The number of millions of users also makes Zenglibao the largest monetary fund in China.

As of October 2013, 10, Alibaba has become the controlling shareholder of Tianhong Fund with 9 billion yuan, holding 11.8% of the shares.And "Ye Bao" is from Tianhong Fund and Alipay. After the transaction is completed, Tianhong Fund will maintain independent operation.Alipay will remain an open platform. [51]
2013年11月14日，天弘基金宣布，余额宝突破1000亿元，用户数近3000万户，自6月13日上线的5个月时间里成为国内首个千亿规模的公募基金。

Competition between payment methods and standards
Mobile payment, also known as mobile payment, is a service method that allows users to use their mobile terminals (usually mobile phones) to pay for the goods or services they consume.Units or individuals directly or indirectly send payment instructions to banking and financial institutions through mobile devices, the Internet or proximity sensing, resulting in currency payment and fund transfer behaviors, thereby realizing the mobile payment function.Mobile payment integrates terminal equipment, the Internet, application providers, and financial institutions to provide users with financial services such as currency payment and bill payment.

According to the form of payment, mobile payment is mainly divided into near-field payment and remote payment:

1. Near field payment NFC (Near Field Communication) means that when consumers purchase goods or services, they immediately pay merchants through their mobile phones. The payment processing is carried out on-site and offline without using mobile networks. Use mobile phone radio frequency (NFC), infrared, Bluetooth and other channels to realize local communication with vending machines and POS machines.

2. Remote Payment: Payment by sending payment instructions (such as online banking, telephone banking, mobile payment, etc.) or payment tools (such as by mail, remittance).

Case
NTT DoCoMo - Mobile Payment "Mobile Wallet"

In August 2004, NTT DoCoMo launched the mobile payment service "Osaifu-Keitai" using Sony's FeliCaIC technology. ("Osaifu-Keitai" mobile wallet service is the most common mobile wallet service, without the involvement of banks. Users apply for a mobile wallet account at NTT DoCoMo, and pre-deposit a part of the amount to use. Users use this service to purchase goods and pay Deduct directly from the account pre-stored in the mobile wallet. There is no need to enter a password to use the "Osaifu-Keitai" mobile wallet service.)
In April 2005, NTT DoCoMo formed a strategic alliance with Sumitomo Mitsui Financial Group (SMFG) and its subsidiary Sumitomo Mitsui Card and Sumitomo Mitsui Banking Corporation, and spent 4 billion yen to acquire a 980% stake in Sumitomo Mitsui Card.In the alliance, Sumitomo Mitsui Card is responsible for establishing the infrastructure for accepting mobile credit card payments, including installing POS terminals at contracted merchants, merging its existing credit card business with NTT DoCoMo's mobile credit card business, and promoting mobile credit cards; and Sumitomo Mitsui Banking Corporation Responsible for the development of ATMs compatible with mobile payment functions.

NTT DoCoMo's mobile payment brand "Osaifu-Keitai" carries out three types of business: one is mobile wallet.The second is the ID debit card. The ID debit card can be linked to the ordinary credit card of Sumitomo Mitsui Bank, and the user can transfer funds from the credit card to the ID debit card.The third is the DCMX credit card, users do not need to pre-store the amount in this credit card to overdraft consumption.As of August 3, NTT DoCoMo had 2009 million mobile payment customers.

Due to the large currency unit in Japan, it is often difficult to find change when paying with cash. NTT DoCoMo implanted the near-field payment function into its customized mobile phones and it has become popular in Japan. However, the Apple iPhone sold in Japan does not have the mobile payment function, which has also become an obstacle to the sales of iPhones in Japan. [30]
The revolution of mobile payment tool - personal credit card device

In 2009, Twitter founder Jack Dorsey started mobile payments company Square. Square provides mobile card reading equipment and cooperates with the application program in the smartphone to swipe the card for consumption under the state of the network.

Square is a small magnetic device (card reader) that can be inserted into the iPhone's headphone jack. When a credit card is swiped over the card reader, it reads the data in the credit card and converts it into an audio signal, which is then heard by the iPhone's microphone. Recognize the sound and send it to the processor, and then send it to Square's App on the iPhone. The encrypted data from the App communicates with Square's back-end server through WiFi or 3G network and finally completes the payment. Square doesn't store any user information on the device, and it works with almost any mobile device: Android, BlackBerry, Symbian, or even a computer. [31]
2012年，Square的移动支付总额已经上升到了100亿美元，而在2011年才仅为20亿美元。截至2013年6月，Square处理了150亿美元的支付额，共有400多万商家使用该公司的技术，年度增长率高达3倍。[32]
The development of new domestic mobile payment

UnionPay and China Mobile jointly promote large-scale commercial use of mobile wallets (NFC short-distance payment)[33]
China UnionPay and China Mobile have jointly launched mobile payment products - mobile wallets in 14 cities including Beijing and Shanghai.If consumers have a mobile phone with NFC near-field payment function, and then replace it with a SIM card with mobile payment function of China Mobile for free, they can directly swipe their mobile phone to pay at Starbucks, Haagen-Dazs, buses, and subways.

Sina's mobile payment[34]
Weibo Wallet is a social online payment platform launched by Sina Weibo. It adopts Sina’s own "Xinfutong" payment license. It was officially launched on December 12 last year. Sina Weibo has also been experimenting with e-commerce and O15O services. .For example, e-commerce activities such as the purchase of Smart cars and the purchase of Xiaomi mobile phones 2 launched on Weibo were finally paid through the Weibo wallet.Through the Weibo wallet, the closed loop of online e-commerce is completed.In addition, Sina Weibo also has many offline cooperative merchants. Users can place orders online, pay through Weibo wallets, and then go offline for consumption. In this way, an O2O closed loop of the entire Weibo ecosystem is formed.At present, the Weibo wallet mainly has the functions of "recharging mobile phone", "paying water bill", "paying gas bill" and "transfer money to friends on Weibo".

WeChat payment
On June 2013, 6, the WeChat public account of "McDonalds888" has supported the purchase of electronic coupons on WeChat, and the purchase can be completed by entering the account number and password of Tenpay in WeChat.WeChat-based Gaopeng "Weibu Group" already supports direct payment for orders in WeChat, and also supports FortunePass and Alipay. [35]
On August 2013, 8, WeChat 5 was launched, and the payment function was particularly attractive. This function realized one-click payment in official accounts, scanning QR codes, and apps by binding bank cards.The payment link does not need to go through Alipay and third-party payment tools, but only connects to Tencent's own Tenpay. In this way, the closed loop of WeChat's e-commerce has been formed.

The case mentioned the Japanese operator NTT DoCoMo.Buy a small bank with a small sum of money and get a bank license. With the license, you can directly use NFC on your mobile phone to issue credit cards.For example, mobile operators set up a mobile payment model for each merchant, and use the method of pre-deposited phone charges to give corresponding discounts. Banks try to attract people to save money, and they have to pay interest, while mobile operators are not the same, users deposit 1 yuan Money, it gives the user a mobile phone, and then gives the user 5000 minutes of talk time. The user’s 1 yuan will be deposited to the operator, and the operator will use the funds that do not pay interest or repay the principal to the user to lend and compete with banks. , the advantage is very obvious.In addition, mobile operators can see everyone's consumption status through mobile payment, and the data acquisition is more comprehensive than that of banks. Not only are financial services and marketing more accurate, but also the rate of dead debts and bad debts is lower than that of banks. Over the carrier?How to change the policy of financial regulation is the key to the development of the industry.

Therefore, only by controlling informatized data can we control customer needs and financial risks.In the final analysis, the reason why the bank's business model has been subverted is that the information flow based on the Internet and mobile Internet has completely integrated the traditional capital flow and bank customer flow.

In the past, when you opened a bank or a bank, you must go to a place with a lot of people and a developed economy. Now it doesn't matter at all. Where the people are, the bank will be there.Informatization is the foundation of banking reform.HSBC, Citibank, and Industrial and Commercial Bank of China, the largest banks in the world, have many branches and good credit, but in the mobile phone era, affected by these aspects, who will replace them?Is it Alibaba, or Amazon, or a mobile operator, who will become HSBC, ICBC, and Citibank on mobile phones?
◎Recommended reading

Ali Financial Empire: Jack Ma's Ambition and Dream[36]
Ma Weihua: Six Directions of China's Banking Industry Reform[37]
Is it menacing or not surprising?Three people talking about Internet finance[38]
Insurance companies should pay for mobile security services: making more money without accidents

Insurance—the most intelligent creative industry of mankind

I give a definition of insurance: "Insurance is the most intelligent creative industry of human beings. It does not produce new things at all. It just uses human beings' fear of disasters to earn money from users. What insurance brings to people is spiritual. hope and security".In my opinion, the intelligence of the insurance industry is second only to the three major religions. It does not create anything new, but sells a sense of psychological security and deals with people's fear of disasters.

(End of this chapter)