A beginner's guide to investment banking

In the Internet financial wave, if you only know the balance treasure, financial management, if you think the baby can represent the entire Internet finance, that is really wrong. Over the years, this powerful power has been in the Internet financial sector, with the high-level rectification, regulatory escalation, peer-to-the expansion of speed has exceeded your imagination. As a financial needs of you, it is time to look away from the balance of the treasure body to take a close, to see what you have to know about peer-to have a few things:

1 , what is peer-to?

P is the meaning of English peer. Mainly refers to the financial model for individuals to provide small loans to other individuals through a third party platform on the premise of charging a certain fee. There are two main customer objects, one is to lend money to customers, the other is the need to loan customers. With the rapid development and popularization of the Internet technology, the micro-credit borrowing is gradually changed from a single offline mode to a parallel on the line, and the resulting is the peer-network borrowing platform. This has enabled more people to enjoy peer-to micro-credit services. Another important purpose of the development of peer-network lending platform is to alleviate the imbalance of the consumption power caused by uneven income at different ages by means of borrowing.

Popular explanation is: a legal license to the enterprise to build a platform, a lot of financing and investment needs of the people gathered together: the borrower issued the loan information, the lender to find a suitable project to lend money, the platform is responsible for audit credit, supervision repayment, charge related fees and so on.

As far as origins are concerned, peer-lending is a financial catalyst. The traditional way of personal borrowing is through financial institutions such as banks, where individuals pool their deposits into banks, and banks are looking for borrowers and lenders as intermediaries, and borrowing from one another changes this pattern: you put your money in the bank, the bank borrows the money, and then gives you 0.35% interest. Now you see the borrower directly from the peer platform, and the borrower gives you 10%, 20% or even higher interest.

2 , what are the risks of peer-to network borrowing?

Of course there is a risk! the most important consideration of the investors ' participation in peer-network platform is the risk, and if the risk of the peer-network borrowing products cannot be identified, then the high rate of return is futile.

For investors, the biggest risk is a sentence: I borrowed money from the collection will not return! There may be reasons for this: external policy and regulatory risks, borrower credit risk, peer-to credit and business risk, and force majeure.

Borrowing this thing, always with the risk, you know everything good friend of you borrow money can not get back, become bad debt, not to mention this a large group of strangers gathering place.

But for the compliance, strong, secured background of the peer-to platform, the borrower in the event of credit risk or other reasons, resulting in money will not be returned, the platform can be the money to compensate investors, that is, the current domestic lending business mainstream mode-guarantee. But the situation is less rosy for the less compliant, weaker-than-peer platform. Not he does not want to help you to carry, is he really can not afford, bad debt is too much, this is also the beginning of last year, China's peer platform has a large number of failures, run, deep in the plight of the reasons.

Here are six types of platforms that can never be cast:

First Category: A platform with an annual yield of more than 24%

This is the most sad one of the people who invest in the peer project, because the investment is a high return to the person, or the direct deposit of the balance of treasure, or to the bank to buy a fund is not more simple, more assured? But Tiger brother still want to remind you must face the financial investment industry a basic Law and law, that is always "high yield must mean high risk","high returns and low risk" things, we do not dream.

In principle, the rate of return-to-peer investment is very good in 10%~15% (most of the time is the monthly repayment, but also the principal, so the actual yield is far lower than the nominal). More than 15% of the tens of millions of people, more understanding of the project itself risk, profitability, the likelihood of success and the borrower background and integrity, repayment capacity. As for those who are still 30%, 40% than usury also fierce project, Tiger Brother's attitude is ignored ignore!

Second Category: Platform operations team not professional

So how to identify a platform operations team is professional? Can you seriously look at their entrepreneurial team? Do you have any experience in the financial industry? Does the wind control team have experience in small loans under the cable? You must not make a hasty decision by simply advertising on the website.

Category three: A platform with a huge amount of financing

The most pure peer is actually the individual to borrow money from individuals, at most, the individual may be a self-employed (or now fashionable called small micro-enterprise), do some small business, the lack of a 30,000, 50,000, 100,000 of the start-up money. Now the peer more play the more chaotic, the more play the bigger, motionless a project dare to million, the composition of the borrower is more and more complex, but the vast majority of peer sites lack financial industry qualification and experience, no credit and wind control capabilities. This type of single investment is too large to recommend participation, even if it is to cut the total amount of investment (because it does not solve the borrower's repayment ability and integrity issues).

class Fourth: Platforms that do not touch ultra-short-term projects too much

Some projects with short investment periods are often traps designed by informal platforms to attract investors. Because of the quick results, investors can quickly see the proceeds of the money, so this kind of subject often attracts more attention. But such standards generally do not avoid the suspicion of financing and illegal fund-raising.

Class Fifth: A platform for opaque information

It is a platform of information intermediary, and the core of it is information. That is, the borrower's information is posted on the platform, after the investor bids to draw the loan. Therefore, the authenticity of the borrower's information is of paramount importance. Some platforms disguise the borrower's money by tricking investors into using them, leading to a series of serious consequences. Therefore, the whereabouts of funds is also a matter for investors to pay attention to. In this respect, the investor can choose the transparent platform with high transparency.

Class Sixth: The platform just launched

NET loan the shortest "run history" was again "constant gold loan" refresh. June 27 just on-line new platform Heng Jin loan morning on-line, the afternoon boss lost the joint, refreshed the network loan to flee the new history. Review the nearly half-yearly running platform, operating time less than half a year accounted for the overwhelming majority. As a result, you will need to choose the platform for at least one year when choosing a peer-to-peer platform.

3 , what kind of peer platform should I choose?

The first is the pure online mode, is purely peer-to, in this platform mode purely information matching, to help the two sides of the fund to better match funds, but the shortcomings are obvious, this online model does not participate in the guarantee, such as pat-on-loan is the pure line of peer mode;

The second is the mode of creditor's rights transfer, the platform itself to lend, and then put the creditor's rights into the platform for transfer, it is obvious to enable enterprises to improve the efficiency of the financing end, but easy to appear the pool of funds, can not make full use of funds, such as the best letter is the pioneer of this model;

The third is to provide the principal and even use the interest guarantee of the peer-to mode, this model is the mainstream mode of financial market, the principal guarantee of the peer-to model is the concept of indirect access to funds, such as peace of mind loans, everyone loans, Red Ridge Venture has followed this peer-to model;

The fourth is a peer-to platform that the financial institutions or quasi-financial institutions of credit assets through the Internet in a way to the very low threshold of the external sales, the amount of only 50 yuan to the third-party financing guarantee Company as a guarantor, with the protection of principal and interest, high yield, 0 cost and quasi-current characteristics, this model is not much There are only a few platforms such as the Lufax, which is the model;

Although the CBRC does not make a clear detailed supervision of the peer-to market, but also has probably pointed out the direction of the future peer-to platform development, first: the platform to "clear positioning", peer-to the lender and the borrower to provide information services agencies, themselves do not undertake credit conversion, term conversion, liquidity conversion function, Peer companies should "not touch the money". Second, peer agencies should be strictly segregated from client funds and carry out independent third party escrow. The third is that "there is a threshold", peer agencies should have a certain threshold of employment. The Forth is to "re-transparent", to the lender's full disclosure of information and risk-revealing. Five is "strong self-discipline", encourage the industry self-regulation, promote industry best practice in time.

From the original: NetEase forum.

A beginner's guide to investment banking