91 Finance: Subversion or improvement?

1, 91 finance is to meet the existing needs, product compliance is also basically accepted by the regulatory authorities and banks, no need to repeatedly verify demand.

2, standing in the perspective of financial institutions to help them think about the problem, you will find that Internet finance has a lot of empty to fill. If you're completely antagonistic to traditional finance, you've lost a lot of opportunities.

3, finance itself has its logic, you must respect its logic. To subvert it may turn its own life upside down.

4, the Internet finance is the system lags behind the market, which means that entrepreneurs can neither stay away from the red line-so too conservative, will lose the opportunity to start a business, and can not step on the red line, the industry violation is going to be a big problem. The trouble is that this red line is floating, but in some places it is absolutely impossible to do, such as building a pool of funds.

2013, the term internet finance became hot, 91 Financial founder and CEO Xuzey tasted "Pig on the Tuyere" taste. October 2013, the completion of the broadband capital received 60 million yuan a round of financing, July 2014, the completion of Hoi Tong Kaiyuan received 200 million yuan B round financing. "91 financial transactions are now 300 million or 400 million yuan a day," Xuzey told me at the end of June.

When Xuzey September 1, 2011 founded 91 Finance, there is no internet finance the word, he to 91 financial positioning is "financial electric quotient", help financial institutions sell products online, the bank, fund companies, insurance companies to understand as a shop, loans, financial products, insurance to understand as a commodity. This model was recognized by the Jingwei Venture, which invested in the 91 financial Angel Wheel.

Xuzey's parents and grandfathers work in the banking system, he has a knowledge of traditional financial institutions, he sees parents ' friends always find their parents to understand the loan information, they also loan, feel the inconvenience and pain of consumer loans. From a consumer's point of view, the first response to a loan is to find a friend who works at a bank, but the banking business is diverse and the loan policy is not necessarily familiar to the bank. The second is to find friends around the loan to ask, friends just passively accept services, nor professionals. Either run the bank, run the intermediary, the bank is not all outlets can apply for loans, intermediary is the need to collect fees (the rate is usually 1%-2%, that is, the loan 2 million yuan, intermediary charge 20,000 yuan or more).

He assumed:

First, financial institutions rely on the laying of physical outlets to find customers, the cost is high.

Second, the industry is fiercely competitive, how can the second Echelon challenge the first group? More sales channels need to be expanded. For example, Zhejiang Commercial Bank in Beijing on four outlets, but also want to do business in Beijing, and there is no cost in all of Beijing to lay a lot of outlets, then how to do? He needs an intermediary to help him find clients.

Third, more and more consumers will find financial products through various methods. Users with loan needs need better products, quick, convenient and free access to professional services.

He thinks that now the offline financial intermediaries, to the user charges, in order to show their value, today to call the user to pay the house, tomorrow to do another procedure, in fact, can be completed at once, the user experience is not good; in order to collect more money, agitation, packaging users more loans, originally only 2 million of the loan, must borrow 3 million, Also increases the risk of banks. Intermediary is entirely a person's business, some intermediary staff to do two years, you can go out to open a new, intermediary of the fission-type development, is not conducive to the size of the operation of the industry. Beijing has two thousand or three thousand financial intermediaries, tens of thousands of home, you can hardly say which has a certain influence in the national financial intermediary brand.

If you move to the Internet, the user free, to the financial institutions charge, without packaging users, what is what. And, all the interaction is completed on the Internet, there will be no staff network monopoly, conducive to large-scale. "Based on the demand of financial institutions, based on consumer demand, based on the demand of offline market environment, we feel that we can do a platform to sell financial products on the Internet and choose loans to make a breakthrough." "Today, it's not hypothetical," Xuzey said. ”

Xuzey had previously worked on Sina and data marketing companies, and 91 finance started as his old line, finding potential loan clients through data marketing. "I've been doing Internet data marketing for a long time and I think it's possible to sell products online." I also have knowledge of financial institutions. But more importantly, I'm particularly deeply aware of the real pain point of the trading market, my own loans, I see my friend loans, I see how the traditional bank to deal with. You don't know the Internet, you know what finance is capable of, you have to find the pain point of the user's needs. ”

Eliminate the problem of asymmetric information, improve transaction efficiency, reduce transaction costs, enhance user experience-This is the logic of Xuzey 91 finance.

91 Finance began to release all the financial products, allowing users to choose, which led to a very low matching rate. In fact, the financial products and other products are not the same place, other products as long as users are willing to buy, the seller must sell. But financial products, not the user is willing to buy on the line. Sellers (banks) in the sale and not sell on the decision is very large, he needs to look at the qualifications of different users, if the user wants to buy, to meet his requirements, and financial products consumption, must be process experience, not one-time, the transaction ended, service has just begun.

Putting all the financial products in front of the user only creates a misconception that all banks can lend to them. Therefore, the user is not satisfied with the loan, the bank is not satisfied, I want the person is like this, how do you give me a person like that?

91 Financial change practices, so that banks will be listed, the user to apply for loans, by 91 finance to do a match, what is the user's needs? What is the user's condition? For example, a user makes a credit loan, and banks usually make loans at 15-20 times the monthly income. However, if the user's career is a teacher, in some banks will be able to receive 30 times times the monthly income of the loan. These hidden conditions are not known to the user, but 91 finance knows that he can help such users find banks with relatively low interest rates and higher loan amounts.

In a flash, the conversion rate increased.

Each bank introduced a user, no matter whether the transaction or not, 91 finance to the bank charged 300 yuan of information fees. Overall, 91 of the financial conversion rate of more than 10%. 91 of the financial services to the target of 1 million to 10 million of the capital needs of people or capital owned people, "basically in the one or two-line city, there are one or two suites of people, is our clients," Xuzey said.

In order to avoid the frequent harassment of telephone users like offline financial intermediaries, 91 finance has also made some improvements in the user experience. The user uses the anti-harassment setting to bind 91 Finance's 400 telephones, the credit manager dials calls all through 400 telephone transfer, unless the user tells the credit Manager mobile phone number, the other party is not to see the user's mobile phone number. After the loan is completed, the user only has to send text messages, or nothing to do in a week, and then automatically untied the time, so that the credit manager can not contact you again.

"We help the user solve the problem, otherwise the brand cannot grow so quickly." "91 Financial technology Vice President Hu Juncheng said. He thinks the cost of harassing phones is too high for internet companies to do. Internet companies have the ability to pinpoint user groups in a more efficient way. For example, users on the microblog said today is a little tight, or recently want to buy a house and so on, this time 91 financial and people to promote concessional loans, users may go to see.

Mu Yi, a bank account manager in Beijing, said: "(91 finance) their staff quality is relatively high, the degree of mastery of the customer is better, the level of customer screening, for us, they attract customers is a strong demand for loans." ”

91 Finance plays the role of the bank's front desk and completes the early service for the users. Users don't need to learn how to communicate with banks, just tell 91 finance what I need. 91 Finance will be based on the needs of users and the user's loan qualifications, users will be recommended to the appropriate bank, the bank to do follow-up approval, face sign, put money, the day-to-day monitoring of loans and other work.

Xuzey said: "Chinese traditional financial institutions, do not do enough places, by the offline intermediary to do, these intermediaries earn excess profits." I have to admit that some of them are valuable, but there are some places where the fees are too high, the pattern is problematic and I'm upgrading. ”

"Xuzey is thinking about the real problems that have already been under the line," he told the traditional financial institutions, "said Wang Xin, a partner of the Beijing law firm, who is familiar with internet finance. Many startups that do not have financial genes need to validate their needs over and over again. But Xuzey's idea is to satisfy existing needs, and the compliance of products is largely accepted by regulators and banks. ”

The internet has revolutionized finance. Ali Balance treasure, also did not change the nature of the Money fund, the balance treasure Liu yield and Ali does not matter, this is not the creation of Ali, but the balance treasure can let all the people to buy a flexible money fund, this is really the creation of Ali.

Here in 91 finance, innovation is not subversive, but online and sunny. 91 If finance is to be overturned, it is a financial intermediary under the line.

In the 2013, internet finance became hot. Xuzey deeply felt that he became "the pig in the air," in 2012, he wanted to see a branch of the president is difficult, in 2013, the branch president of the 91 financial offices to visit a lot. September 1, 2013 news broadcast 91 finance, as the case of internet finance-because the 91 financial model is relatively safe and cautious, it facilitates the transaction, but not directly involved in the transaction. This has made 91 financial brands a step. Beijing issued financial Information service licences, the first one to 91 finance. "Finance is tied to trust, and brand is particularly tightly linked." Even if your user experience is almost, you are willing to use a big brand. ”

91 Finance's first bank client is Standard Chartered Bank, the second customer is Citibank, they have no competitive advantage in the country, need customers, so more radical than domestic banks, more willing to try some innovative practices. Foreign banks helped 91 of the financial market to ascertain the operation of the law, has become the first fulcrum of market-driven. With the cooperation of foreign banks to do cases, 91 of finance and then pry open the door of domestic commercial banks.

First to find a branch of the president does not work, grassroots salesman willing and 91 financial cooperation, because they understand that 91 financial is the channel, can help him pull customers, complete performance. For example, the last week of the end of 2013, 91 value-added treasure a week to collect 300 million yuan, a branch of the end of the financial pressure to solve. In this way, starting from the grassroots salesman, 91 finance in the bank within a layer of breakthrough.

Internet finance has become increasingly influential in the public the Government's determination to financial reform and interest rate marketization is still more resolute, the head office is affected by the policy encouragement, plus the following sub-branch's performance also gives the very good support, two strength, one share from the bottom up, another stock from the top down, 91 Finance finally reached a strategic partnership with some of the bank's headquarters. "You can't imagine that the four big guilds are looking for you," said Pu Lei, founder of the 91 financial union. In the past their idea is that as long as the service of a good big business, do not have to pay so much effort with you. However, now the number of large enterprises is limited, the competition has come to a bottleneck, coupled with the promotion of Internet finance, four major lines are also active to come to the door.

Internet finance is not an entrepreneurial hotspot abroad. Because, foreign financial industry under the development of online has been more mature, China relies on internet finance to make up the gap. The more backward, the more opportunities. Internet finance is not only a peer-to-peer, not only this treasure that treasure, it must be a set of service mode, for consumers and banks to establish a more efficient and low-cost channels.

The internet is not likely to subvert banks, the Internet is a tool, just as banks now use computer systems, but the former banks have not used the internet properly to serve consumers. Because of asymmetric information and asymmetric service, the cost of loans to consumers and small micro-enterprises is very high. By integrating the ecological chain of finance through the Internet, the bank's profit can be controlled in a relatively reasonable range.

The volume of internet finance, depending on how the traditional bank reform, if the traditional bank to change very well, internet finance will be controlled within a certain range, will not form the subversion of traditional banks.

1000多万名 User Consulting, 2 million have reached the transaction of the user, 91 financial shelf A large number of user data, data modeling has a foundation. From the user generation demand, to information interaction, matchmaking, commitment, the entire financial service chain, 91 finance initially only earned the first part of the money-mining information, to financial institutions. They are thinking about a problem, can they make money in the back? For example, after a single return fee (CPS), or selling financial products, to earn capital gains.

91 of the financial users, 20% are small and medium-sized enterprises. Small and medium-sized enterprises to finance the income rate is not high, 1 million yuan financial management, the annual rate of return is heading, low yield, long closed period, flexibility is poor. Small business, how can you put millions of yuan of money to the bank for a year? Some people even wonder if they can borrow the company's money in their personal name and put it in the balance treasure? This also inspired Xuzey them, they find Minsheng Bank, and Minsheng Bank under the fund to do 91 value-added treasure, a SME-oriented financial products.

91 value-added bao similar to Watson's own brands sold, 91 financial and livelihood of the Bank of the Fund to do, in the name of the regulatory authority for the filing of the People's Livelihood plus Bank of 91 financial month surplus plan. 91 Value-added treasure, 1 million yuan, starting to buy a low, closed period is 1 months, the yield is 5.5%. Thus, 91 of finance has shifted from a mere intermediary service platform to a company that runs financial products jointly.

91 Value-added treasure similar to the concept of group buying, 100 small and medium-sized enterprises, each 1 million yuan, collected up is 100 million yuan of funds, can get higher yield. But 100 accounts, what do you think of as 1 accounts? Minsheng Bank with 91 financial innovation, through a compliance approach to this matter.

Xuzey said: "You need to stand on the bank's point of view, the bank can mobilize the resources are very large, he is a huge existence, in some places he did not do, not because he is stupid, but he did not worth, entrust others to do." Finance needs to be improved, not revolution. Find the market's shortcomings and weaknesses, to transform, we choose to serve the good consumers. My competitors are using a revolution-like version of the idea that we are working with financial institutions to improve their approach. ”

Now that the financial industry is fiercely competitive, banks are also innovative, communicating with them, and the most important thing is what value can you bring to them? Minsheng Bank through the counter, a week to sell hundreds of millions of yuan of wealth management products is also easy. But why 91 financial cooperation? Because the counter is selling old customers, 91 of finance can bring new customers.

Wang Nio-rui: "Many people think that traditional financial institutions, especially banks, are closed and conservative, in fact, the financial institutions are not monolithic, there are many innovative ideas and attempts, especially in small and medium-sized banks." Because the competition is fierce, go backwards, if want to do bigger, must innovate. ”

The advantage of Xuzey is that the understanding of financial institutions is more solid and he can convince them. If you assume that financial institutions are stubbornly conservative, it is difficult to achieve cooperation. You assume that financial institutions are also dynamic and innovative, and you will think in terms of their business people, design products, use the language they understand, and make products that conform to their internal business processes.

"If you stand in the direction of financial institutions to help them think, you will find that Internet finance has a lot of space to fill." If you're completely antagonistic to traditional finance, you've lost a lot of opportunities, "Wang Nio-rui said.

At the beginning of 2014, I asked Xuzey why not to do a personal wealth management products, he replied: "I do a person I do but the balance treasure also do not make money." "After a few months to see him again, 91 finance launched 91 prosperous fortune." This is a similar peer-to-peer Internet Direct financial products. Many individual users in the online see 91 value-added treasure, call to buy value-added treasure, there are tens of thousands of yuan, hundreds of thousands of yuan of money to stay in hand to do financial. This gave birth to 91 prosperous.

Xuzey executive Force, Hu into 3 o'clock in the morning to send him an e-mail, Xuzey a minute to reply to the message, "he always pay attention to the progress of things, you call him at any time, he will give you a reply." "91 Value-added treasure in Shanghai press conference, Xuzey prepared a 40-minute speech, he has been practicing until three or four o'clock in the morning." 7 o'clock in the morning the same day, to the scene and began the exercise.

Peer-to-peer is actually a financial catalyst. Financial media is not the original of internet finance. But because the Internet, reduce the cost of information flow, become hot for a while. Peer-to-peer has become one of the hottest areas of Internet financial entrepreneurship segmentation.

The person who originally buys the wealth management product, probably only 3% 5% of the income, the loan person needs 20% to borrow the money. Now, 6%, 8% of interest rates can benefit both sides more. Why couldn't you have done that before? In the absence of suitable technology, the large scale of the information on both sides of the symmetry, the need to lay down a large line of the team, advertising, and the reaction speed can not do so quickly, the cost is too high.

Peer-to-peer one end is a financial person, 91 finance does not need to deal with customers face-to-face, through the Internet to interact, and now payment system is also very perfect, direct transfer can be. The focus is on the other end of the borrower, 91 finance from other companies to dig the director of wind control, like the logic of bank loans, the need to audit the borrower's qualifications, the current technology, large data can not be fully online audit. So need face-to-face communication, family status, financial situation, check the other side of the bank credit information, if there is a company, to see what the company do, how the business, what the purpose of borrowing. Borrowers need to have realisable collateral, which is estimated at 10%-20% pass rate.

91 Finance has a fund to do the guarantee, if the borrower did not repay the money on time, 91 finance first to return the money to the user. If the borrower delays, the problem is liquidity, there is credit risk, the auction house-this is the same as the operation of the bank.

Internet finance is first and foremost a part of finance. There are problems with the efficiency of financial institutions, but not all of them are wrong, for so many years, there is a reasonable side, the lack of place can be changed to improve efficiency. Finance itself has its logic, and you must respect its logic. To subvert it may turn its own life upside down.

Internet finance is the system lag in the market, which means that entrepreneurs can neither stay away from the red line-so too conservative, will lose the opportunity to start a business, and can not step on the red line, the industry violation is going to be a big problem. The trouble is that this red line is floating, but in some places it is absolutely impossible to do, such as building a pool of funds.

Finance is influenced by policy so much that it can determine the development of the company. Xuzey said that the need to adapt to this environment, must accept the government's research and demonstration. He will not feel that this is a burden, they come to research, but also to the government to introduce their own opportunities to facilitate their own deepening of the policy impact.

Xuzey said: "Many businesses have to work with traditional financial institutions to see opportunities." Not in the first plan. Focus on the trend, grasp the opportunity, there is a strategy, but the opportunity of planning is not so strong. I see a Shanghai financial Bureau director this afternoon, he said you in Pudong I can give you any policy, then I can do more in Shanghai. If I don't see him, I don't have the chance, you can't plan. "91 Finance is responsible for sales of Vice President Zhengshen think Xuzey is a special extreme person, as long as there is a chance to die to grasp." For example, when financing, he is not said to find financing on the line, but will be Chinese VC see again.

91 Financial employees are a lot of 85, Xuzey now often and many more than 40 years old, or even fifty or sixty years old financial institutions, he has to look up the road, but also bow to the cart. Today look up the road pull a cart, tomorrow will look up the road to pull a cart. Xuzey also hope to look up today to see a policy, can bow to pull a cart every day. It's not realistic, he doesn't know what's going to happen tomorrow, sometimes it's a draft, and it doesn't mean it's going to be done in the end, but clients and the media will say that it limits what they're doing and must explain it to them. In the definition of CEO Xuzey, the first one is to grasp the policy and grasp the trend.

Xuzey said: "The wind is coming, you will enjoy a variety of benefits, all aspects of resources are coming." If the wind stops, I'll do it as usual. The outside world has put a lot of labels on us, the first is the financial electricity quotient, then is the financial big data, now is the internet finance. I have been telling the team, don't forget what the real goal is, can do a good job for the general financial consumer of the online financial services platform, which is the most important. ”

(Patrick's new book, "The Subversive: the emerging entrepreneur in China's business Revolution", was sold in Beijing, east and Amazon. )

Patrick Public Number: Entrepreneur Watch (QIYEJIAGC).

Author: Patrick Business writer

Focus on new business changes and new business leaders.

Contact Email: next1066@vip.sina.com

Reprint please specify the source, the protection of intellectual property from a small place.