Internet Consumption Finance Will Face Market with One Hundred Billion
Source: paper.cnstock.com View: 244 Date: 2015-12-04

Recently, the State of Council published “The Guidance Opinions on Actively Playing Leading Function of New Consumption to Rapidly Cultivate and to Form New Supply and New Driven-Power” that puts forward to fully improve and optimize consumption environment, to support development of consumption credit loan, to encourage required main bodies of market to actively raise and build consumption finance companies, and to promote pilot scope of consumption finance companies expanding whole China.

According to data, in the year of 2013, the internet consumption finance market in China reached 6 billion RMB; in the year of 2014, trade scale broke through 15 billion RMB with grow speed of exceeding 160%. It predicts that in 2017 the whole market will break through one hundred billion RMB; in next three years, the growth rate may reach 94%. Insiders put forward that when consumption market in China is bigger and bigger, internet consumption has gradually become main stream of consumption; with popularity of credit card, it is right time for e-commerce to do consumption finance.

Toocle recently published “Hangyin Consumption Finance Co., Ltd.” is smoothly developing crowd-built by this company with Bank of Hangzhou, and has gradually been promoting. This is also the first time for this company to engage with internet consumption finance.

Currently, beside Toocle, other internet enterprises are also entering into internet consumption finance. “Huabei” from Ant Financial, “Baitiao” from JD Financial, Baidu, Suning and other platforms also promote new products in the field of internet consumption finance. On the November 11th of 2015, the users of Baitiao has increased 800% year-on-year; Huabei has paid 60.48 million orders accounting for 8.5% of total transaction of Alipay.

Some insiders believe that internet enterprises supported by big data, combined with some basic data such as individual consumption and credit reporting have matured development bases and advantages to build consumption finance companies with frequent activities in financial industry.

"The huge potentials of consumption finance and change of consumption behaviors from China’s people make internet consumption finance become hot topic recently. The people born in 1980’s and 1990’s have become main force of social consumption because they relatively accept and approve this super consumption concept. Internet technology expands user groups and consumption scenes covered by consumption financial services. In future, big data and credit reporting will become important points of competition for internet consumption financial companies” said by Cao Lei, the director of China’s E-Commerce Research Center.

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