Internet Business Thinking

Chapter 24 Online Lending: Ending the Lending Crisis?Financial Age Revolutionary? (6)
In 2007, more than 80% of loans in the United States were credit loans, while in my country at that time it was almost zero, and more than 99% were mortgage guarantees, because Chinese banks must have the ability to convert risks.The financial risk in the West is a cost, and the risk can be controlled through various financial means. This is the difference between the Chinese and Western financial systems.

Fan Xiaoxin and his entrepreneurial partners first had to break through the barriers of bank-enterprise docking and conducted research on more than 1200 small and medium-sized enterprises. He traveled to almost all banks other than the four major state-owned banks, from branches to head offices. It took three years to "brainwash" the banks to accept the credit loan model. At the same time, the research and development of the cloud computing platform was also going on non-stop.

In 2010, Fan Xiaoxin finally ushered in the first order with a quota of 1500 million, but he did not fully open the breakthrough, because the financial attempt may not be replicable. The success of this order may not be systematically used in batches for the credit of small and medium-sized enterprises loan.Subsequently, the three carefully screened companies reported by the Golden Telecom Union Bank failed, and the Golden Telecom Union Bank fell into a dark period before dawn. If there are only sporadic cases and a new model cannot be formed, the Golden Telecom Union Bank still has no future. Fan Xiaoxin even thought about quitting the industry in the trough period.

Starting from the second half of 2012, Jindian Union Bank has entered a period of rapid development.After the "running tide" of SME owners, national policies encourage Internet finance to serve the real economy and support SME financing.

Take the Internet Finance Express

Fan Xiaoxin often attends various Internet finance activities, but he believes that he is in the circle of pan-Internet finance. Compared with the current popular Internet models such as P2P and crowdfunding, he is at the starting point of "post" Internet finance - finance in the era of big data .In fact, one of the core connotations of Internet finance is to mine data to promote financial activities, and Golden Telecom is a big data financial enterprise that is truly based on big data mining and analysis.

Fan Xiaoxin explained that the reason why it is defined as Internet-like finance is that unlike other Internet finance relying on the public network, Jindian Union Bank grabs data from the internal network. From this perspective, it is actually somewhat similar to Ali Finance However, Ali Finance cannot solve the financing problems of off-site financial companies.Jindian Union Bank has done more subdivision, mining data from the supply chain system of an industry.Many small and medium-sized enterprises that supply core enterprises, for example, there will be thousands of suppliers around the core automobile enterprises, which will generate a large amount of transaction information. These small and medium-sized enterprise suppliers are the service objects of Jindian Union.

Credit loans have broken the bottleneck of the lack of fixed assets of small and medium-sized enterprises. In fact, small and medium-sized enterprises have credit. The biggest help to them is that the credit of enterprises can be converted into funds, which can solve the daily liquidity needs of small and medium-sized enterprises.

Be in awe of the charm of big data
Fan Xiaoxin is very in awe of the charm of big data, because big data gives many interesting things, for example, "arithmetic yield rate" can tell you whether the company's operating conditions are good or bad. You don't need to find specific reasons, and the natural operating conditions of companies with high yield rates will be Well, vice versa is poor.It's just like judging the economic operation status by the amount of power generation.

"Billing cycle" can reflect the risks behind a business operation.If the billing cycle is long, it reflects that the relationship between the company and the main supplier is not good, or there are quality problems, and it may even be that the relationship with the purchasing department of the upstream manufacturer has not been handled well.Under normal circumstances, the billing period is once a month, and companies with a billing period of more than three months have a high probability of downside risk.

"Fund accumulation" is the best reference index for calculating the credit line. The capital accumulation of core manufacturers can be converted into a credit line, and the change of monthly capital accumulation can reflect the credit stability of the enterprise.

"The driving force of banks to lend to small and medium-sized enterprises is insufficient," Fan Xiaoxin believes, "there are two major problems in banks' loans to small and medium-sized enterprises: one is that the cost remains high; the other is that the accuracy is not high, and they cannot be supervised in time." Institutions are unwilling to do high-risk and high-cost SME loans, and Golden Telecom can help banks realize real-time supervision of existing customers from loan disbursement to collection.Make risk warnings in time, and tell banks whether they are healthy or not, even in the next three to six months, through credit tracking.If the current situation of the enterprise is good, but the orders drop, the inventory rises, the checkout period is extended, and the checkout rate drops, it can be an early warning for the bank.

When enterprises fail, the metropolis will go through a process of "boiling frogs in warm water". It is not a sudden problem, and timely supervision can predict the water temperature in advance.Without the knowledge of other financial institutions or relevant creditors, measures such as early collection and credit contraction were taken immediately.

Data balance, error correction and prevention of fraud
There are also many credit rating agencies in China, but the credit rating reports of small and medium-sized enterprises cannot be used as the basis for loans in banks.According to Fan Xiaoxin's analysis, there are two main problems here. One is that the credit rating system is Western, mainly for report analysis, and many banks do not believe the report.Another problem is that without the constraints of a mature credit system, analysts' personal factors have great authority over report analysis.

In the case of an incomplete domestic credit system, Golden Telecom has found another way to calculate the credit of each company based on real transaction data. It only takes more than ten minutes for each company, and the cost is almost zero.

Under the condition of the current lack of credit system, credit fraud is rampant, how does Golden Telecom Union prevent corporate fraud?Fan Xiaoxin told "Manager" that the data entry for the big data analysis of Jindian Union Bank is the supplier side of the supply chain management system, and there is a set of data mining robots to mine the data.The supply chain management system is similar to the UnionPay transaction system of a bank. It is an interactive system, and the transactions in the system cannot be changed. It is impossible for a single enterprise to modify the data.

So, is there any chance for the supplier and the main manufacturer to jointly carry out counterfeiting?Fan Xiaoxin believes that there are two major difficulties in counterfeiting that it is difficult for companies to overcome. One is that the counterfeiting must be complete in order to increase the quota.Supply chain data depends on the supply quantity of all suppliers, and it affects the whole body. Orders, logistics, etc. have to be changed. This is a very complicated project.Second, data mining robots will clean out abnormal data based on the analysis of past data and future data, and intermittently increasing some indicators will not increase the quota.In addition, this system data has no back door, and no one can modify the rating results.

Version 2.0 upgrades monitoring and "diagnostic" services

As long as the enterprise has a supply chain management system, it can provide credit "diagnosis" services. At present, in order to better promote and apply objective credit, the platform has established 100 industries such as the manufacturing industry, the supermarket industry, and the pharmaceutical industry. Industry objective credit system reserves.Up to now, Jindian Union Bank has helped more than 100 enterprises to pass the loan approval, with a credit line of 7000 million to 20 million, and a total of more than 2012 billion yuan of credit, which reached 10 billion yuan in 2013 alone, and is expected to be reached by the end of 20 It can reach 30 billion yuan, and the cumulative credit line will exceed [-] billion yuan.

The automobile industry has always been an industry that Golden Power Union has deeply explored. Can this model be expanded to industries other than automobiles?
Fan Xiaoxin responded that there are no industry obstacles.One is data mining, which can be done as long as there is an electronic supply system; the other is data analysis, the parameters of the automotive industry are completely valid in other industries, the parameters can be fine-tuned, and the formulas are automatically corrected, because this is doing big data analysis, not industry analysis.For example, for shipping companies, the algorithm can be released in three days, and only the corresponding data needs to be supplemented.

Fan Xiaoxin revealed that Golden Electric Union Bank has developed 4.0 products, which are expected to be launched one year later, and Golden Electric Union Bank's products are planned two years in advance. The 9 product launched in mid-September can provide banks with post-loan supervision. The large number of SME customers in the bank cannot be supervised. Golden Power Union Bank can help banks to supervise and the bank will pay the service fee. This business can solve SME loans for banks. After the post-regulatory difficulties, the source of customers has gradually shifted from the corporate market to banks.In the eyes of the bank, the supervision work requires a lot of manpower and material resources. Except for a small amount of labor costs, the other costs of Jindian Union Bank are almost zero. Bank supervision efficiency.In addition, it can also help the government, PE, and consulting agencies to take "X-ray films" for enterprises and conduct "diagnosis".

At present, Jindian Union Bank only charges a commission of 1% to 2% of the credit line of the enterprise. Even if the service fee is added, the annualized interest rate is less than 10%, which is much lower than the current average level of financing costs for small and medium-sized enterprises. Fan Xiaoxin said with a smile that it is In doing good things for enterprises, at present, we mainly serve enterprises well and make this emerging industry bigger.

The surge in the performance of Golden Electric Union Bank has also attracted many investment institutions to pay attention to it and "paint cakes" for it. The market space of the automotive industry alone exceeds 5.00 billion.The volume of the auto parts industry is several trillion, and the financing demand is calculated at 20%, and the market is also in the scale of hundreds of billions.It is understood that there are more than [-] industries in China with complete electronic supply chain systems and many potential users. It is not a problem for this model to reach billions or even tens of billions in the foreseeable few years.

(End of this chapter)