Internet Finance with High Speed: Company May Die & Platform Will Exist Forever
Source: View: 297 Date: 2015-12-07

In the cool winter, internet finance is sweeping Beijing.

On the December 1st of 2015, the 2015 Financial Evolution has been held in Beijing that is covered by smog fully. More than two thousand people from credit and internet finance enterprises occupied all the seats in this conference; at the same time, Sina Jinqilin Forum also talked about internet finance. What’s more, the 2015 China Internet Financial Development Summit and Global Finance Sharing 100 Talent Forum have closed only two days before.

Under influence of internet finance, each investor enters into market that makes industry to accomplish rapid development and integration. For example of traditional loan officer, this group has gradually been released from traditional finance institutions under influence of internet finance. Haodai Cloud Order built by makes 300,000 loan officers to accomplish sharing of loan businesses and begins “Self-Finance Era”.

This is not an example of internet finance rapid development. Someone said that China’s internet finance is accomplishing development like building high-speed railway, but it still lacks of something. Li Mingshun, CEO of said when accepted interview from reporter that problems of infrastructure can affect internet finance development still exist mainly include not open credit reporting system, not build industrial sharing mechanism, and lacking of assessment systems; to build all of these mechanisms need a long time.

High Speed

Internet finance has expanded huge industrial chain, in each big internet finance summit, these enterprises existing in upstream and downstream of industrial chain are most active groups, such as IT enterprises engaging with systematic software development, service providers engaging with marketing and promotion, Ancun Technology engaging with notarization preservation and etc. are promoting rapid development of industry. Internet finance development frequently has achieved echo from regulatory level.

On November 28th of 2015, Sheng Songcheng, the director of survey & statistic department of the People’s Bank of China indicated that the People’s Bank of China has listed internet finance statistic system in banking finance institution statistic system will be implemented in 2016.

Internet finance listing into statistics of the People’s Bank of China will help to monitor internet finance risks; also means the identity and legal position of internet finance have been further confirmed. According to latest data from the third-party, during the period from January to November of 2015, the P2P internet transaction volume has reached 1.0329 trillion RMB in China, which increasing 267% year-on-year; the historical accumulated volume of transaction has been 1.4836 trillion RMB. Internet finance has showed development with high speed like high-speed railway.

Currently, interne finance mainly includes the third-party payment, P2P and crowd-funding. Internet finance industry is attracting more and more new gamers including state-owned enterprises. Zhongjin Guotai is a new P2P platform that was online in July of 2015, currently it has broken one hundred million RMB transaction scale. Sun Zhibo, CEO of Zhongjin Guotai said when accepted interview from reporter that e-commerce users have reached 400 million people, while users of P2P money management only have millions of people. Everyone has demand of money management thus has huge space of development; besides that finance with its special features can’t form BAT layout, “currently, many platforms lack of good assets and need innovation of assets and operation models to make new platforms corner overtaking.”

Platform Exists Forever

Because the nature of internet finance is still finance its assets are achieved from many industries. Although the guidance opinions from the Peoples’ Bank of China defines P2P platform as “information agency”, no matter achieving assets or platform VC can’t live without professional personal.

The asset source of traditional credit institutions mainly depend on loan officers thus companies need huge amount of loan officers that also need large cost in human resources and management. Internet finance although broadens channels of achieving assets; assets quality of loan orders are not stable and cost of achieving users is continually increasing.

Some P2P platforms build loan officer groups with thousands of and even tens of thousands of people with same nature of traditional finance, and also guard against moral risks of loan officers.

In 2015 Financial Evolution, promoted “Haodai Cloud Order” that is the first self-finance platform in China and means to connect capital for industry and to match good creditor’s rights, including lading bill platform for loan officers and institution platform for enterprises. This equals in era of internet finance one loan officer can serve many institutions.

"After promoted Haodai Cloud Order, loan officers not need depend on any institution, only submit loan bill to ‘lading bill platform’ that can automatically match the most suitable institutions and products” indicated by Li Mingshun. In his opinions, in future many industries can’t be restricted by a company but hosted by a platform. Therefore, company will die and platform will exist forever. For example, couriers serve a express platform, nannies serve a housekeeping platform, “however, loan officers usually have relatively high production that one loan officer can loan millions of money only for a year to affect flowing of capital in society. In future, China will increase loan with 20 trillion RMB per year.”

Currently, Haodai has become the biggest credit loan search and distributed service platform in China, formed ecosystem services including, the app “Xindai Circle”, Fengkong, Cloud Finance to provide services for more than 10,000 financial institutions, 300,000 loan officers and 10 million borrowers.

Li Mingshun said that actually the company is not a P2P but a third-party service provider, and also is an industrial connector continually innovating and breaking through. This is a new breakthrough of sharing economy with theory implementation and model innovation in the field of internet finance. “It optimizes and distributes financial practitioners via sharing economy, releases them from institutions, and makes them to re-build business modes and profit distribution system with institutions.”

According to understanding from reporter, beside, Zhongxing Micro Finance has “Feidai” system; Ris Investment is planning “Dingdong Finance” to accomplish idnustrial rapid integration. Chen Min, CIO of Ris Investment said that to integrate industrial loan officers and to let them become salesmen of platform can increase selected asset amount, are matching demands of continue growths from internet finance platform.

Huang Jinlao, vice-president of Suning Corporation indicated that the mission of internet finance is to promote low-price finance and preferential finance; to greatly develop preferential finance has become guidance of finance industry in China. Preferential finance is that can be used by people as more as possible and they can afford. “The performance of practical business is suitable financing interest rate, relatively lower interest rate of financing and easier operation.”

However, currently lacking of credit data still restricts development of preferential finance. Chen Min also said when accepted interview from reporter that lacking of assets on one hand is a problem of environment, on the other hand reflects some problems of industrial infrastructures such as not perfect individual credit system, fragmented sharing mechanism of big data system that can’t efficiently fit for business demands of industrial booming development and can’t provide rapid support in risk control.

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