Internet Business Thinking

Chapter 23 Online Lending: Ending the Lending Crisis?Financial Age Revolutionary? (5)
There is no doubt about the future of Internet finance, but when all eyes are on the Internet financial platforms of major giants, financial platforms in vertically segmented industries may be more likely to succeed.As long as it is based on the understanding of subdivided industries, industry foundation and data accumulation, it can launch highly competitive Internet financial products, and then catch the ride of Internet finance.

(Section 2) Risk control mechanism is the lifeblood of P[-]P

As one of the most important landing solutions of Internet finance, P2P has attracted more and more entrepreneurs to enter the market.For P2P companies, the establishment of a risk control mechanism has become the top priority. Rongyirong tries to ensure the safety of funds through a three-level risk control mechanism: the first level is on-site inspection, the second level is the data center, and the third level is the risk control mechanism. It is the fulfillment of the guarantee.

Internet finance has become the hottest industry nowadays, and P2P, as one of the most important landing solutions of Internet finance, has also attracted more and more entrepreneurs to enter the market.However, with the recent outbreak of some negative events, the P2P model is facing a crisis of trust.For P2P companies, the establishment of a risk control mechanism has become a top priority, and the establishment of a risk control system by Rong Yi Rong may be worth learning from other companies.

P2P Mode of Internet Finance
Internet finance refers to an emerging field that combines the traditional financial industry with the spirit of the Internet, using the Internet platform to engage in traditional finance.In addition, Internet finance has a fashionable name: silk finance.Because the customers engaged in investing in Internet finance are mainly small customers, compared with traditional finance who hate the poor and love the rich, Internet finance is more enthusiastic about retail investors. Through retail investors, it absorbs a large amount of data, and then forms accurate analysis of big data to better absorb Market share, forming larger data, and this is where its unique charm lies.

2013 is known as the first year of Internet finance. In this year, in the field of Internet finance, various new platforms such as P2P, online wealth management, crowdfunding, and third-party payment continue to emerge.According to relevant data, on average, at least 2 to 3 Internet finance-related platforms go online every day to integrate into this new industry.

Behind the prosperity, industry competition is intensified, especially in the P2P industry, which is at the forefront of the Internet financial field, and the competition is even more intense. P2P lending is the abbreviation of Peer to Peer Lending, and Peer means individual, so it is a kind of credit model from person to person.Since it was introduced to China in 2006, in just a few years, after testing the water in 2010, exploring in 2011, and developing in 2012, it finally ushered in explosive growth in 2013.According to third-party statistics, there are more than 500 platforms that already exist in the market and can be counted. Just as Wu Guang, the co-founder and CEO of Rongyirong said: "P2P is a good landing solution for Internet finance, which can be effectively implemented. connect investors and borrowers in a timely manner.”

Countless entrepreneurs have invested in this wave of Internet finance, and the P2P model has become the most popular model among entrepreneurs, and Rong Yi Rong is one of them.Wu Guang recalled: "In 2007, I noticed that CreditEase is a company whose model is the transfer of creditor's rights. So I thought, can we build an offline CreditEase?"

For Internet finance companies including Rongyirong, the biggest confusion before them is legal issues.At present, the definition of illegal financing in my country's laws has been relatively vague, especially the P2P model, which is easily misunderstood as illegal financing.Therefore, Wu Guang studied the law by himself for more than a year, and finally decided that starting from CreditEase's model, it is feasible to carry out Internet finance. "At that time, I consulted some experts in Hong Kong. I thought that the future law would open a green channel for the P2P model."

Started planning in 2010, started preparations in 2011, and officially launched in 2012, Rongyirong tries to provide financing channel planning services for individuals and small and medium-sized enterprises by integrating excellent resources in the industry, helping small and medium-sized enterprises to truly solve their financial needs, and at the same time providing Investors provide stable, safe and convenient wealth management service channels.It took Wu Guang three years to finally get Rong Yirong on the right track.As of press time, Rongyirong platform has achieved 2 million yuan in transaction volume, more than 3 registered people, and more than 5 investors. Over the past year, it has created more than 1000 million soft profits.

How to Solve the P2P Trust Crisis

Since P2P entered the country, although it has always been the hottest model in the field of Internet finance, many platforms have used high interest rates to attract capital inflows, coupled with regulatory gaps and imperfect systems, resulting in constant negative news, "vol. A series of adverse incidents involving P2P online lending platforms, such as money running away, counterfeiting targets, and illegal fundraising, broke out one after another. Especially since October 2013, the P10P industry has entered a period of "accidents".According to relevant statistics, as of the end of October 2, there were as many as 2013 P10P online lending platforms that had difficulty withdrawing cash. Among them, Fuxiang Venture Capital, which had the shortest life, ran away within 2 days of going online, which further aggravated the chaos in the industry. Makes the entire P30P model encounter a crisis of confidence.

Just as Huang Zhen, Deputy Secretary-General of the China Banking Law Research Association, said: "The P2P industry has market demand, supply, and intermediate service providers. The development of the industry has a solid foundation and strong potential; at the same time, there is also a large amount of funds accumulated on P2P platforms, but , because the P2P online lending industry has been in a state of three noes for a long time, that is, there is no entry threshold, no industry standards, and no institutional supervision, which has planted the seeds of problems for the occurrence of problems."

But at the same time, Wu Guang, the co-founder and CEO of Rong Yi Rong, also put forward his point of view: "The occurrence of these negative events is inevitable. When an industry is in explosive growth, it is the process of the market's survival of the fittest. In the long run, these The emergence of incidents will play a positive role in promoting and purifying the industry."

For P2P models including Rongyirong, the most important thing is still risk control.As Wu Guang said: "Although finance has leverage, it must be within a controllable range. Internet finance has very strict requirements for risk control." In terms of platform capital supervision, as a real P2P platform, it is necessary to strictly abide by the " The principle of "no savings, no lending" and insist on being an open and transparent information service platform.The investor's funds are supervised through a third-party supervision platform, and the funds are "specially used for special purposes" to prevent random movement, so that the safety of funds can be effectively guaranteed.

According to Wu Guang, at present Rong Yi Rong is mainly trying to establish a three-level risk control system to ensure the safety of funds.

The first level is the site survey.Conduct on-the-spot investigations on the company's operating conditions, employees' appearance, inventory, materials and other information to ensure the creditworthiness of the borrowing company.

The second level is the data center.Query the various economic data of the enterprise through the data center, including debt status, exploration of hidden liabilities, sufficient repayment sources and repayment guarantees, etc.

The third level is the implementation of guarantees.The borrower must have a guarantor or collateral to counter-guarantee in order to ensure the safety of the business.

(Section [-]) High tech!Cloud robot intervenes in credit evaluation
Jindian Union Bank has created a new Internet financial business that provides objective credit "diagnosis" for small and medium-sized enterprises. As long as it signs an agreement with Jindian Union Bank, the "cloud robot" developed by Jindian Union Bank will be connected to the supply chain management system. , by mining data, a "diagnosis" can be made within 10 minutes, and a credit rating evaluation report can be automatically generated.

How can small and medium-sized enterprises obtain loans if they have no collateral and are unwilling to bear the joint insurance risk?How to convert the objective credit of the enterprise into the loan amount?
Jindian Union Bank is a company that taps the objective credit of small and medium-sized enterprises. It is an operable credit cloud platform for small and medium-sized enterprises and banks.As long as the small and medium-sized enterprises sign an agreement with Jindian Union Bank, they agree to connect the "cloud robot" developed by Jindian Union Bank to the supply chain management system of the enterprise, and let it mine data, including order placement, production, logistics, warehousing, and export. Through cloud computing, 12 major items such as inventory, production line on-line, off-line, VAT invoice confirmation, checkout, and payment can be made in 10 minutes—that is, the effort of drinking a cup of tea.These data automatically generate a credit rating evaluation report through the "big data objective credit index model", and the cooperative bank can log on to the cloud platform to query the company's credit and give corresponding credit.

Mining the financial value of supply chain data

Fan Xiaoxin, chairman of Jindian Union, originally ran an IT company, mainly providing supply chain management systems for auto parts companies in North China.After learning that these small businesses were suffering from a shortage of funds, he began to think about mining the financial value behind the supply chain data. At that time, there was no concept of cloud computing and big data.

In 2007, he established Jindian Union Bank to do objective credit calculations for the auto parts suppliers he got acquainted with, and then introduce them as customers to banks to apply for unsecured credit loans.

(End of this chapter)