Mutual gold meets the danger of death and death, and the industry's watershed becomes more and more obvious

In October 13, the General Office of the State Council took the lead in releasing the implementation plan for special rectification of Internet Financial Risks, requiring relevant departments to cooperate in carrying out special rectification in the internet finance field to promote regulation and supervision on private financing and lending activities. At the same time, the relevant regulatory authorities also target P2P (Network lending), equity crowdfunding, Internet Insurance, third-party payment, Internet Asset Management, Internet Financial advertising, and so on, six special rectification solution documents were issued. This regulatory document was issued by industry insiders as the strictest regulatory period in the history of internet finance!

　　At this time, the launch of the "curse" is in the autumn of Financial Affairs

From the "Guiding Opinions on promoting the healthy development of internet finance" last year to the implementation of the "Implementation Plan for special rectification of Internet Financial Risks", Regulation on internet finance is becoming increasingly strict. So why should the country strengthen supervision at this time?

　　I. macro-level: preventing economic decentralization

The current domestic real economy's return on investment is far lower than that of asset investment. More and more people are joining in asset investment appreciation or speculation. This is evident from the increasing property prices, economic decentralization is intensifying. At this time, the country must tighten its monetary policy. As internet finance accounts for a higher and higher credit ratio, the country must not only tighten lending by traditional financial institutions, but also tighten lending by Internet Financial platforms. At this time, the Internet financial platform was rectified to take into account the overall situation of the domestic economy.

　　Ii. Micro-level: Industry chaos

According to data published by the online lending home in October 1, 98 platforms were suspended and the number of problem platforms was increasing in September, with 40 problem platforms and 58 closed platforms, the speed of industry shuffling is intensifying. There are too many criminals who use internet finance to raise funds illegally to defraud ordinary people of money. Previously, in order to allow Internet finance to develop well in an industry with scientific and technological innovation, the country did not impose many restrictions, because too many restrictions may affect the rapid development of the entire industry, it is not conducive to the development of national inclusive finance. But now it is different. Some excellent platforms in the internet finance field have begun to emerge, but at the same time, many industry chaos has emerged. The country must resolutely stop all types of fraud platforms.

　　3. Another layer of deep understanding: rectification is not totally negative.

The special rectification of internet finance will only be a good thing for the whole industry, and it is a treasure of platforms with ghosts. Special rectification does not mean denying the innovative field of internet finance, but aims to protect legitimate platforms and create a healthier and more stable development environment for internet finance. If any industry develops freely, it will eventually only lead to those illegal platforms to confuse the entire Internet financial environment, leading to the loss of confidence in Internet financial management by the common people. It is wrong that all platforms are fraudulent, in the end, it is not conducive to the development of the industry.

　　The mutual gold industry has entered the post-regulatory era, and the watershed has become more and more obvious.

With the launch of the seven major regulatory documents, internet finance has also entered the post-regulatory era, and more platforms will face elimination and collapse, and the watershed of the entire industry will become more and more obvious.

　　Fund acceleration is concentrated on high-quality platforms, and a hundred billion-scale platform will be born

This publication of the State Council's General Office documents means that the stricter regulatory age is approaching. Platforms with strong risk control capabilities, such as lujin and Renren loan, will be sought after by more and more users. For most financial users, the benefits will be one of the important reference factors for them to choose a platform, but the high security has far exceeded the high income. Therefore, high security is the core competitiveness of a platform's Internet financial platform that can continue to grow and grow. At present, a few platforms such as lujin Institute and Renren loan have taken some advantage in this regard.

Lu Jin, as the leader of the Internet Financial Network lending platform, has a valuation of $18.5 billion. According to Ping An's annual performance in 2015, the total transaction volume in the P2P second-level market of lujin has reached 52.4 billion yuan.

The second-year Renren loan was revealed in an email for the 6 th anniversary of the previous day. The total turnover of Renren loan has exceeded 21.2 billion yuan, and the loan balance is nearly 11 billion yuan, with a total of 22.6 million matching transactions, the amount earned by the borrower exceeds 2 billion yuan. Starting from January 1, 2011 of the first complete year after its establishment, the annual compound growth rate of Renren's loan turnover in five years has reached 372%. They also proposed to achieve an overall asset volume of more than 2020 by 100 billion. As funds are gradually concentrated on the Quality platforms such as lujin and Renren, it is not far from achieving a hundred billion RMB.

1. Relying on the comprehensive financial experience and talent pool of Ping An group over the past decades, Lu Jin has established an international Professional Risk Control Team. Renren loan has built its own risk control system based on its accumulation over the past years. It and lujin both were named AAA-level credit platforms. In August this year, in the online lending home rating, everyone's loan compliance ranked first. The most rare thing is that they also performed 100% manual review.

Second, lujin strictly isolates customers' funds and platform-owned funds, all of which are managed by qualified third-party financial institutions. Renren loan began to promote the Fund deposit and management model since 2014, and reached a fund deposit and management cooperation with Minsheng Bank. They have all achieved comprehensive isolation between user funds and platform operation funds. This isolation avoids the possibility of self-built fund pools on the platform and eliminates the hidden danger of unauthorized fund misappropriation on the platform, this ensures the security of users' funds at the root.

3. lujin's past rapid growth is closely related to providing third-party capital guarantee companies to users as guarantees. While Renren loan always adheres to the principle of small-size decentralization. Almost all of their assets come from micro-credit. During the past six years, the amount of micro-loans on Renren Loan accounts for the majority, the ratio of lower than 0.2 million is as high as 98.4%. In addition, they are also the first to disclose their own performance reports in the industry, so that the platform information is open and transparent.

　　Three platforms will be gradually eliminated

The other platform, in contrast to the steady development of lujin's and Renren's loan services, is like taking shortcuts to the rich. The closed-down and running scenes are happening almost every day. With the advent of a stricter regulatory age, such platforms will gradually be eliminated.

One is companies with the purpose of deception. In fact, internet finance is the product of the combination of modern Internet technology and traditional financial development. It has a great significance for the times and can promote the development of inclusive finance. However, it was also used by many scammers. For example, in the previous renting event, tens of billions of funds were defrauded. In the current Internet financial market, this platform is still full of money for the purpose of obtaining money, but in an increasingly strict regulatory environment, these platforms will gradually reveal their original shape.

The other is a platform with poor risk control capabilities. Some entrepreneurs mistakenly regard internet finance as an era where channels are still king. Therefore, they only care about blindly expanding user channels, the most fundamental reason for ignoring internet finance lies in the risk control capability of the platform. Some platforms even use this as a bargaining chip to attract users under the banner of high profits. Once the bad debt rate of the platform gradually increases, their capital payment will become faulty, leading to a broken capital chain of the platform.

Another type is the relatively weak comprehensive platform. Although today's internet finance market landscape has not yet been fully established, it is an indisputable fact that users are concentrated on platforms with strong platform capabilities and strong security risk control, it is difficult for some weak platforms to achieve great development. The brutal growth period of internet finance has passed, and it is difficult for weak platforms to grow rapidly.

　　Vertical market segments in three major financial fields still have entrepreneurial opportunities

Internet finance involves a wide range of areas, including lujin and Renren loan. It is difficult for any Internet financial platform to thoroughly understand the entire market in every field, this means that some good platforms will emerge in some vertical market segments. Although the scale of these platforms may not be very large, because they have more professional services in a certain field, they can find their own sky in this field. In particular, they have greater market opportunities in the following three financial fields.

1. Consumer finance. Consumer finance is the biggest hot spot in pursuit of all Internet Finance and has become an important battlefield for banks, e-businesses, and P2P companies, consumer finance involves multiple fields such as real estate finance, automobile finance, tourism finance, and education finance. The difficulty of consumption finance lies in the creation of consumption scenarios. However, once the platform has a mature consumption scenario, it is easy to establish its own consumption finance based on the Consumption scenario.

2. supply chain finance. Consumer finance is faced with ordinary consumers, while supply chain finance is mainly used to provide financial services for upstream and downstream SMEs in the supply chain. Different Supply Chain financial service platforms may appear in different industries.

3. Rural Finance. In the traditional financial era of the past, rural finance was the most slow-growing area. In rural areas, loan difficulties have always been a major challenge for farmers. The rural financial market is still a very low-development field, which also gives birth to huge market opportunities.

　　Conclusion

In general, internet finance has entered the regulatory period since the brutal growth period. With the gradual introduction and implementation of Internet Financial policies, regulation is becoming increasingly strict. The announcement of the "Implementation Plan for special rectification of Internet Financial Risks" of the General Office of the State Council officially announced the entry of internet finance into the post-regulatory era, and the increasing popularity of Internet Finance, it is accelerating the elimination of platforms with poor risk control capabilities, and users will concentrate on platforms with high security. An era with stronger risk control capabilities is approaching.

　　Liu Kuang: liukuang110

Mutual gold meets the danger of death and death, and the industry's watershed becomes more and more obvious