Internet Business Thinking

Chapter 21 Online Lending: Ending the Lending Crisis?Financial Age Revolutionary? (3)
Guarantee companies are highly related companies.Still taking Wangying Tianxia as an example, Wangying Tianxia E-Commerce Co., Ltd., where the platform is located, and Hualongtian Investment Guarantee Company, which claims to provide guarantee services, both belong to Shenzhen Huaruntong Optoelectronics Co., Ltd. The platform is highly related to the guarantee company, which is prone to The platform does its own risk control and guarantees itself.If the platform is suspected of "self-financing", the so-called risk control and guarantee will not have any practical significance.

The so-called "self-financing" means that business owners with their own entity open a P2P online lending platform online, and after raising funds from the Internet, they use it to transfuse their own business or affiliated companies.If it is "self-financing", the guarantee and risk control claimed by the P2P online lending platform to investors is a true lie.

The risk reserve is not transparent and its use is irregular.Most P2P online lending platforms adopt the risk reserve advance payment model, but there is no clear disclosure of the source and use of the risk reserve, and there are no reasonable rules and regulations in the use process, lack of supervision, and it is easy to operate in the dark. Makes the so-called risk reserve a mere formality.

According to the incomplete statistics of Wangdaijia, except for platforms that adopt the guarantee model, only 2% of P[-]P online lending platforms disclose the value of their risk reserves, but few of them can provide bank account numbers for investors to query.And there are very few companies that can supervise investors and use every reserve fund in a transparent and compliant manner.

P2P online lending platforms that have not announced the risk reserve system generally use the personal assets of the platform owner as an advance payment, which is even more opaque.From a legal point of view, the platform owner is not obliged to make an advance payment, so the platform's ability to resist risks is also worse.

In 2013, most of the platforms with cash withdrawal problems did not have a clear risk reserve mechanism, and Orient Venture Capital with this mechanism, because no one supervised the use of its funds, the so-called reserve funds were not used to repay the borrowers according to the original regulations Overdue, but to deal with investors' cash withdrawals.Such a risk reserve is more like an anesthetic injection, and it becomes a self-defeating lie in the face of real risks.

Guarantee qualification and leverage of platform companies. In 2013, P2P online lending platforms that had difficulty withdrawing cash or closed down had 28% of their registered company names with the suffix “Investment Management Co., Ltd.”, and 19% with the suffix “E-Commerce Company”.In fact, the business scope of those e-commerce companies should not involve guarantees. Therefore, whether their platforms are qualified for guarantees is a matter that is debatable.

Problematic platform companies, the registered capital is basically distributed between 500 million and 1000 million. Compared with the turnover of tens of millions or even hundreds of millions of yuan, the leverage is very high, and the platform has to bear high operational risks. Few have sufficient risk control capabilities to cope with the overdue of one or two large loans.Zhejiang Jiajiadai, which has been registered, had an outstanding amount of 1.1 million yuan at the time of the accident, but its registered capital was only 500 million yuan, and its leverage was as high as 22 times!
The operation team of Changzhou Huibao Credit, which also had cash withdrawal problems, had only worked as customer service on an online loan platform before. They lacked actual lending experience, and the loans were too concentrated, and a sum of several million overdue brought it down.

the market will sell

The P2P online loan 2.0 model has achieved the explosive growth of China's P2P online lending, but the success is also Xiao He, and the failure is also Xiao He. Because of the platform's promotion of "principal guarantee", some investors began to ignore the risk and authenticity of the loan target , Blindly and even aggressively pursuing high interest rates.Some ill-intentioned or weak platforms have also rushed online, relying on high interest rates and bid splitting (long-term loan targets are split into short-term loans, and large-amount funds are split into small amounts, resulting in a mismatch between terms and amounts).The problems exposed by the collapsed P2P online lending platforms also exist in the surviving platforms.The risk of reviewing the borrower's quota and qualifications, the liquidity risk and accumulated capital risk caused by bid dismantling, and the intermediate account risk caused by recharge and cash withdrawal are still threatening the platform and investors.

After experiencing this industry turmoil, the surviving platforms should operate more prudently, strengthen risk control and IT technology strength, focus on both finance and the Internet, improve the operating efficiency of the platform, and seek a more compliant model. Seek high-speed growth, but seek steady and steady development.And those radical P2P online loan investors will become rational after a tragic education, and their investment experience and literacy will also increase, and scam platforms will gradually lose the breeding ground.For the entire industry, it will be born because of the market, and it will also go with the market. Although the process of market elimination is cruel, under the influence of the two forces of traditional financial network and private financial Internet, the future of China's P2P online lending There is also a huge market that may reach 10 trillion.In the face of the revolutionary product of Internet finance, in addition to the necessary industry self-discipline, it is also inseparable from the good-faith guidance of the regulators, the establishment of a record system, the standardization of fund custody plans, and the establishment of a credit reporting system.

(Section 2) To be a P[-]P platform of Taobao model
Despite the frequent chaos in the P2P online lending industry, not all platforms in the industry are involved.As China's first P2P online lending platform, Paipaidai has the industry's lowest loan default rate of 1.5%, which proves that it is correct to stick to the third-party position, and also proves that grassroots finance can also innovate a reliable risk management and control system.

As a Chinese disciple of Muhammad Yunus, Zhang Jun led his classmates and alumni from Shanghai Jiao Tong University in August 2007 to establish China's first P8P online lending platform.It is also from this year that China's Internet finance has a brand-new innovative model.

Looking back on the past 6 years, the performance of China's P2P online lending is not as perfect as imagined. Successive incidents of bosses running away, controllers being arrested, group incidents, usury, savings absorption, disguised financial management and other vicious incidents have made P2P online lending more and more difficult. become the focus of society.As the instigator of China's P2P online lending, where will Paipaidai go from here?
not an industry stranger

A "Rating Report on 60 Popular P2P Online Lending Platforms" provided by the third-party information agency Wangdaizhijia shows that the comprehensive index of Paipaidai is second only to Renrendai, with a score of 76.69, ranking second in the industry. In the popularity list of borrowers, it ranks first in the industry.

Among the rating objects included in Wangdaijia, there are many powerful companies such as Lufax, Hongling Venture Capital, Wenzhoudai, etc. How does Paipaidai obtain such a status?If you want to find the answer, you must first understand the team of Paipaidai and its business thinking!

Aiming at the current chaos of P2P online lending, "Manager" found that the problems caused by human factors are more concentrated than market competition, and the human factors are mainly caused by operators, most of whom do not have Internet or financial background.P2P online lending platforms lacking these two genes not only have low ability to control business risks, but also are most prone to financial black holes or illegal operations.On the contrary, the 60 P2P online lending platforms included in the weight of the industry by Wangdaizhijia all have more or less Internet and financial genes, and Paipaidai is a typical example.

According to Zhang Jun, there are four people in his team including him, and the other three are Gu Shaofeng, Hu Honghui and Li Tiezheng.Not only are they all graduated from Shanghai Jiaotong University, but each has a background in Internet and finance.Compared with competitors, the Paipaidai team has good conditions in terms of knowledge and ability to control operations.It is precisely based on the recognition of this team that Sequoia Capital invested 2012 million US dollars of venture capital in Paipaidai as early as 2500, making Paipaidai the first P2P online lending platform in China to obtain VC.

Although compared with China Merchants Bank's "e+ stable financing project P2P online loan" and orthodox financial institutions such as Lufax invested by Ping An Group, Paipaidai is more grassroots, but Zhang Jun told "Manager" that he has two Dream, in addition to realizing his own financial freedom, he hopes to provide a model for China's lending finance, and thus establish a real credit system.In his opinion, the bank's credit investigation system is not a real credit investigation, and Paipaidai will break new ground.

lonely business model

With the background of Pai Pai Dai and being the first P2P online lending platform company, it should quickly move towards scale. The business scale ranks only tenth in the industry.This phenomenon is actually related to the business model chosen by Zhang Jun and others.

Ma Jun, the chief researcher of Wangdaizhijia, told Manager, "Most P2P online lending platforms adopt the advance payment model in order to increase their influence and scale in a short period of time, except for Paipaidai." The advance payment model represents the two major business models of the current P2P online lending platform.From the perspective of Zhang Jun’s understanding, “P2P online lending platforms should always adhere to the third-party position, and the platform should not intervene in online lending.” In his view, advance payment is an intervention in lending, which deviates from the third-party attributes.

What is the difference between the advance payment mode and the non-advance payment mode?Why does Zhang Jun insist on not paying in advance?
The name P2P online lending platform has actually made it clear that it is a platform, not a lending participant.

"The P2P online lending platform is very similar to Taobao. Taobao can only serve or supervise the transaction behavior of shopkeepers and buyers, but it cannot be responsible for their transaction results." Zhang Jun explained to "Manager", "For example, Taobao's The shop owner found out that he was selling at a loss, so he asked Ma Yun to advance the loss, can Ma Yun do such a thing? But such a thing happened on some P2P online lending platforms, and it was on a large scale.”

Zhang Jun admitted that many P2P online loan platforms adopt the advance payment model, which is very attractive to lenders. From the perspective of investors, after lending money through the P2P online loan platform that adopts the advance payment model, there is no need to worry about debt default, because the platform promises guaranteed principal.

"In the short term, the P2P online lending platform that adopts the advance payment model will develop rapidly and expand in scale, but there are two potential crises at the same time: first, if the lender fails to repay the loan after the due date, and the platform lacks risk control, then the platform will compensate Once the platform's own funds are insufficient to pay, it will only go bankrupt; second, the platform that adopts the advance payment model often requires the lender's money to be credited into its account first, which is tantamount to establishing a "capital". Pool', and finally evolved into a deposit absorption, stepping on the red line of the policy. Therefore, since its opening, Paipaidai has not made advance payments, and it will not do so in the future!" Zhang Jun believes that instead of taking these two major risks, it is better to start slowly Accumulate customer resources and reputation, and eventually everyone will be satisfied.

One-dimensional profit model
Although the ranking of business scale is not high, in the "Borrower Popularity List" and "Lending Popularity List" of Wangdaijia, Pai Pai Dai ranks first and second in the industry respectively, which shows that Pai Pai Dai has a huge fan base.From the official information of Paipaidai, it can be seen that its registered users (including borrowers and investors) have shown geometric growth every year, breaking through 2009 for the first time in 10, and exceeding 2013 million by the end of 200.But is Paipaidai, which serves 200 million people, profitable?What do you rely on to make a profit?
Zhang Jun said that Paipaidai has achieved profit, but he did not disclose the amount of profit.According to "Manager", the main source of income of Paipaidai is to collect service fees for loan transactions, and implement a one-way fee, that is, it is only collected from the borrower and not from the lender. "If there are two-way charges, the lender will definitely pass the cost on to the borrower, and then the borrower's loan cost will increase. Over time, the borrower will complain and be dissatisfied with the service fee charged by the platform, and eventually leave our company. platform.” Zhang Jun believes that he cares more about the borrowers than the lenders, who are the demand side of the loan transaction, and only when they continuously release demand can the actual occurrence of the loan relationship be triggered.

The one-way charging rule of Paipaidai is that when the borrower borrows successfully and the loan period is less than 6 months, 2% of the loan principal will be charged at one time; if the loan period is more than 6 months, 4% will be charged at one time. Site Service Fees.If the borrower is more than 15 days overdue, Paipaidai will charge 50 yuan and 60/[-] of the overdue amount per day as the fee for the website telephone reminder and collection service; if it is more than [-] days overdue, Paipaidai will charge the loan The service fee will be compensated to the lender in proportion. Once the borrower repays the loan, the website will recover the fee from the lender.

From the profit model of Pai Pai Dai, it can be seen that Pai Pai Dai regards services as commodities and charges service fees accordingly. The platform does not conduct financial management or absorb savings, and maintains its duty as a third party.However, the "charging default service fee" in its profit model is very important, but the important focus is not how much to charge, but how to manage the borrower's default behavior.

Self-built credit system
Who borrows money through the Paipaidai platform?Among these people, how can Paipaidai assist the lender to fulfill their service obligations after the loan defaults?
Zhang Jun told "Manager" that when he founded Paipaidai, he positioned his customers as online merchants. Most of the online merchants are individual entrepreneurs, and they have capital needs in starting a business. Therefore, Paipaidai bridges Huicong, Dunhuang, Taobao, etc. E-commerce platforms, and import customers from these B2B, B2C, C2C platforms.However, more importantly, users imported from these platforms can be linked to their business credits. "For example, if a Taobao store owner wants to find someone to borrow money on our platform, in addition to checking his application materials, we can also use the Taobao platform to see how many stars he has, because Taobao's store star rating is also recorded by integrity. Accumulation and true reflection.” Zhang Jun said that obtaining the credit record of borrowers through commercial platforms can reduce the cost of credit investigation on Paipaidai and help lenders avoid loan risks.

However, relying on other people's credit information systems will never achieve their own core competitiveness, so Zhang Jun's team decided to explore by themselves.According to Zhang Jun, since they did not have their own credit database at the beginning, they could only label borrowers according to age, gender, and educational background. Those who give loan credit certification are relatively high, and those who are lower than this standard are required to provide more detailed information. "This method of credit investigation may be ridiculous in the eyes of professional banks, but judging from the summary of these years, our credit investigation method has practical effects." Zhang Jun told "Manager", and they later added micro The credit investigation methods of blogs and WeChat, for example, those who have more than 30 Weibo fans and send Weibo frequently every day, have a high degree of trustworthiness, and the same is true for WeChat.According to Zhang Jun, this kind of credit investigation derived from socialization and socialization is completely more reliable than the bank's credit investigation that only limits whether the loan is repaid on time.

Internally, PPDAI also integrates and analyzes the collected information, and sets 6 different levels of credit ratings for each borrower. Request for more detailed information.

However, it is inevitable that there is a gap in Baimi. Once the borrower fails to repay the debt after the due date, in addition to the lender’s own debt collection, the first step of Pai Pai Dai is to start the recovery process stipulated in the contract and charge a breach of contract service fee; After the result, start the "blacklist" publicity, not only on its own platform, but also on third-party platforms and related public channels.In this regard, there is controversy that Paipaidai is suspected of infringing on personal privacy, but Zhang Jun’s explanation is that this is entirely for the sake of social integrity, and at the same time to inform other platforms, banks and other financial institutions to beware of being cheated twice.

Zhang Jun told "Manager" that after the implementation of the "blacklist" system, the loan default rate of Paipaidai is the lowest in the industry, only 1.5%.We may not have the right to comment on the unique credit investigation method of Paipaidai, but the 1.5% loan default rate they provided is worthy of study and reflection by the entire P2P online lending industry.

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Muhammad Yunus (Muhammad Yunus), a Bangladeshi economist, is known as the "poor man's banker".He led the global "microfinance movement" aimed at serving the poor, and founded the Grameen Bank of Bangladesh (Grameen Bank, also translated as Grameen Bank).

(Section 2) P[-]P online lending, the two worlds of ice and fire in China and the United States
P2P online lending, China is different from the United States, one hot and one cold.The main reason is that the United States does not regard it as a financial innovation, but positions it as quasi-financial, and embeds it in the original financial system. At the same time, it realizes the marketization of interest rates on the basis of a sound credit system.The core reason is that P2P online lending is charity-oriented in the United States, but it reflects commercial interests in China.

After 6 years of self-growth, the P2P online lending industry finally reached its peak in the past 2013, but the number of bankruptcies is the same as the number of new establishments, and the number of new establishments has also surged at the same time, creating a kind of chaos.

Whenever there is a problem with a new financial thing, we always ask, how does the West, especially the United States, do it?

America is calm.According to market research firm Gartner, the scale of P2013P lending in the United States will reach US$2 billion in 50, but compared with the entire consumer credit market in the United States, the proportion is still very small.

Compared with the United States, China is hot and cold. The pessimists see the chaos in the industry, and the optimists see the hope of catching up with the Premier League and the United States.Why has the United States reacted so coldly to P2P online lending?What are the differences between China and the United States in terms of the foundation, model, and value orientation of the development of P2P online lending?
Innovation identification has different angles
(End of this chapter)