36 Krypton Interview Net profit financial founder Chao Lunlong: We want to be China's first

The internet is becoming more and more thorough in daily life, and financial activities are no exception. It can be said: the volume of traditional financial markets, the size of the Internet financial imagination is how much space. "Every segment has enough market space, internet finance and traditional financial institutions do not have to fight," now, to create a high-quality user experience is the most important.

This week, my colleague Wang Xentan and I had the honor to interview Mr. Chao Lunlong, founder and CEO of Wanglibank Finance (micro-credit). He graduated from the University of California, Berkeley, in Silicon Valley to create a Chinese version of the network of Facebook friends (after the occupation of the net acquisition), successively in Morgan Stanley and Merrill Lynch positions. Today, with SNS entrepreneurship and top financial institutions experience, combined in the Internet and the financial field of the double accumulation, is leading a strong background team into the Chinese Internet financial industry. This interview we mainly talked about is its recent official online "net PO."

NET PO is a one-stop internet private Bank, can be based on the actual financial needs of each user, capital situation, affordable risk and other circumstances for its recommendation personalized financial plan, while users can also be on the platform for free online transactions. For the user, he only needs an online financial access, input to the amount of money, time limit, affordable risk, and so on, the net will tell him that he is suitable for his investment and financial planning, users can then be in the Web site or app to buy financial products. Net profit claims that the annual rate of return can reach 12%, and provide third-party principal and interest guarantee.

Why do you choose to be an Internet private banking business? Private banking is a very important and relatively mature business in the western banking sector. In traditional private banking, for example, if you are a high net worth customer, you will have a dedicated private financial advisor to assess your investment preferences and personal risk tolerance face-to-face, make a judgment about your personal asset status, and make a very specialized investment proposal for your asset allocation, And then provide you with a full personal financial butler service. Generally this mode is done offline, only for high net worth customers, and for the general public investors with low personal assets, financial advisers do not provide services at all. And often the general investors have the least investment channels, investment knowledge is the most shallow, is the most need to be serviced by a group. NET PO is to solve this user needs and pain points. NET benefits the Online banking threshold is very low, customers can start from 100 yuan, and get the corresponding financial advice.

Chao Lunlong told 36 Krypton, the core of the network is two aspects: first, "Private", that is, the private wealth management services originally belonging to high net worth investors moved to the Internet, which greatly reduced the threshold of private custom financing; second, "One-stop", that is, the provision of one-stop financial services, So that financial customers can be in the net PO this platform to complete a variety of financial products purchase, portfolio investment, simplifying the investment process. In other words, the net wants to help everyone have a healthy investment plan and reasonable asset allocation.

So, how is the net profit treasure to carry on the appraisal to the financial customer? At present, the net is mainly the online mature evaluation model integrated into the online, data-oriented, using the form of questionnaires to do customer research. The factors to be inspected include: tolerable risk, return expectation, income level, asset status, financial requirement, investment period, etc. During the investment, the net will also analyze the user's investment behavior on the website, in order to constantly revise the conclusions from the previous questionnaires, make more customized financial advice.

After understanding the customer, the net is also how to customer personalized recommendation? In a word, algorithm + artificial.

Algorithm is the basis of personalized recommendation. This set of algorithms is a network of financial team based on years of financial experience independently developed, will be based on the results of the survey and customers on the site of the investment behavior to do user analysis, and then conduct a preliminary product matching. Analyzing the match between the product and the user is a core, but it is not easy to make a real match. Therefore, on the basis of the algorithm, the net will also be through an experienced investment advisor further according to the personalized investment needs of customers to give a comprehensive product portfolio recommendations. For example, for those customers who put forward more investment needs than their own level of risk, they can allocate assets with high risk and high returns, but with a certain percentage of control. Chao Lunlong said: "Although personalized recommended information collection threshold is not high, but we analyze and match the ability of the product is very strong, and product integration capability is also a major advantage."

At present, the asset portfolio contained in net profit finance is rich, including Peer-to-peer network loan, Money Fund, bank finance, insurance, Bill, trust, Capital Management, limited partnership and so on. These portfolios are capable of multiple combinations of risks and benefits. The net Li Bao mentions own annual return rate can reach 12%, this mainly relies on peer-to-peer net loan and so on high risk high income investment project to realize. In particular, it is planning to go online with some offshore fund projects, which is one of the differences between the net-profit finance and other private banks. However, at this stage, the investment project is with third-party financial institutions, they do not personally participate in investment. It is worth mentioning that the net is preparing for the online some overseas fund projects, which they play a different aspect of the card.

Whenever it comes to investment, the wind control system is vital. NET Li Bao uses "double wind control" way to carry on the risk control. What is a double wind control?

The first priority is to conduct risk control and assessment for the cooperating agencies. The principle of net-profit finance is to select only the best quality institutions to cooperate. First, these institutions must first be financial institutions that have a good third party rating, and second, the net benefits value the long-term investment performance of an institution rather than relying on a single outstanding project to evaluate. In the implementation of the assessment, the network will conduct regular communication, inspection and wind control with these agencies through its branch offices throughout the country. At present, there are about 20 financial institutions cooperating with net-profit finance online, including small loan companies, fund companies and financing guarantee companies. The second priority is to carry out wind control on specific investment products. We will be based on their understanding of the customer reverse demand products to complete the Investment product project wind control.

Of course, not only the strict audit wind control, network finance also through Third-party security, Third-party authoritative rating, user accounts by the third party full underwriting (Ping An insurance underwriting), funds and other measures to control the user's financial risk.

On the Internet Financial Industry competition, Chao Lunlong attitude is very optimistic.

First of all, for bat and other internet giants into the financial industry, Zhao always think that bat's entry to a certain extent indicates that the Internet finance industry's prospects are bright. And the net benefits has been stressed is its understanding of financial customers, as well as the ability of the wind control, which is essential in financial services, but also bat and other Internet companies do not have.

Secondly, for the financial and Copper Street, which has been from the standard to cut the non-standard market players, net benefits also did not feel a lot of pressure. Internet finance is a big market and can accommodate a lot of players. The starting point may be similar, but in this process, different teams will rely on their own resource advantages and understanding of the industry, or in different vertical markets to further subdivide. But at present, the Internet financial industry is the adjustment of the people together to cultivate the market.

Thirdly, the net profit finance has its own core advantage. First, the team's financial capacity is strong, most of them have years of investment banking, private equity or banking experience of professional financial professionals. CEO Chao Lunlong also has a successful Internet entrepreneurship experience, which makes them more likely to have an advantage over the average financial practitioner in online business. Second, "One-stop financing services" model is very similar to the bank's model, high barriers. Especially for the financial wind control capacity and asset integration capacity requirements are higher, and these net benefits have advantages.

As of June this year, the net profit transaction amount has reached 1.3 billion (the first half relies on the private banking business under the net profit line), and has close the IDG million dollar a round of financing. At the same time, the B-round financing will also be completed within the year.

At present, the network benefits finance is a large-scale recruitment, recruitment positions, including wind control, internet product managers, engineers, operators, designers and many other positions.