91 Financial Xuzey + huaxing capital Baofan in the eyes of internet finance

Yesterday at the 2014 Phoenix Financial Summit, I was privileged to hear 8 representative entrepreneurs-including 91 financial Xuzey and the Chinese capital of Huaxing's understanding of internet finance. Comb some of the main points to share with you:

Xuzey:

There are three asymmetric claims in financial services:

Information asymmetry--and the internet can solve this problem

Second, the professional knowledge asymmetry-for example: Buy a house is the most suitable bank is ABC, do consumer loans is Huaxia bank-but not everyone knows this matter. This is also the meaning of intermediary existence. The choice of making financial products is not the same as buying a mobile phone. The latter scenario, if you want to spend 5000 yuan, the merchant would like to give you a mobile phone, this thing is done.

and financial products is the process of service: I loan you, it is impossible to decide today, the next second to get the money, because my qualifications are still changing, financial institutions will often change policy. This is why the intermediary exists, it can solve the asymmetry of knowledge

Third, the service asymmetry. You have 1 million and 10 million, and the service you receive is very different.

The internet can exert positive influence on these three points to promote financial innovation. Improve the user experience, to fill the past difficult or not satisfied with the needs of users. More Internet finance companies are not necessarily limited to doing a new product (such as peer-to-peer lending)-There are a lot of gaps in traditional financial institutions, doing a good job and business is enough.

How to cut into Internet finance?

Find a market in the value chain that has not yet been met. For example: 91 initial business--financial products guide--similar to any internet reviews, to help consumers choose, compare, buy financial products

Second, the Internet financial companies are very heavy, such as 91 finance themselves there are 150th people, in such a resource allocation, you must investigate whether the business can achieve results

Can it be scaled and reproduced? Or 91 of the example, the beginning of a loan, but also to do financial, insurance, not only to do matching so simple-the entire transaction process 91 are involved, some products are also their own. This pattern forms a closed loop, operates by itself, and can be scaled and replicated

Internet finance helps financial institutions solve three major problems:

First, the efficiency of the transaction--which greatly improves efficiency and lowers costs--"everyone earns the money that is efficient".

Second, new products are produced based on data and technological innovation. For example: 91 to do value-added value, to small and medium-sized enterprises to manage money. This thing is group buying. In the past, the services (and returns and requirements) of millions and tens enterprises in the bank were different. But now with the Internet platform, together 100 1 million can enjoy the treatment of billion-class customers. In addition, small businesses need to ensure production and management, and in the Internet finance model, each month allows these customers to purchase redemption, giving them more capital flexibility.

Finally, security. The basis for collaboration with banks, funds and management companies behind them is data and technology-the latter is much cheaper and better at security.

What problems does Internet finance solve in the financial field? Xu's view is summed up as a sentence: change the financial pattern.

"ICBC has 19 trillion of its financial assets, all of China's insurance companies plus only 9 trillion of the financial assets of foreign capital, ICBC, the equivalent of the entire insurance industry, a total of more, so China's economy and finance are four major lines of control, financial institutions do not have the ability to challenge four lines, And hope to rely on their own products or services to change the pattern of the industry, then the internet was born. ”

Baofan:

The financial world is in split: Companies like 91 finance are paying, borrowing, investing, and even VC businesses with new technologies. The other is a world like traditional investment banks.

The latter has two major problems: first, there are too many inefficient and unreasonable places in the institutions represented by investment banks; second, finance as a public commodity, under supervision-and the traditional model has not been overturned, mainly by regulatory protection, rather than market forces dominate-these phenomena are unreasonable, change this scenario will promote the development of the capital system

Since 1994, when investment banking began, 20 years later, the digital tools used in investment banking have changed from WET to Word,ppt and still PPT. The job content has not changed, for example: the first year of the analyst is mainly to call people, arrange meetings-often do particularly ineffective work-but the salary from the past level to the current a hundred thousand of dollars a year. Management fees and partitioning have hardly changed.

In the traditional investment banking sector, there has been little change for 20 years. Is the market not affected by the Internet? There are a number of extensions that need to be considered:

First, is there any need for investment banking in the future? The investment bank was created to solve the market liquidity problem and help to solve the capital allocation. Information in the Internet age is becoming more and more equal: a person worth hundreds of thousands of yuan, with a price of billions of, can enjoy the same information, even the same service. Need institutions like investment banks to play such a role?

Second, the investment bank is the use of large trading platform to exist-the world's largest trading platform is no more than the exchange: Submitted, Shenzhen, NYSE, NASDAQ ... There are a lot of otc--these are the platform of the investment bank. Are there efficiency issues with these exchange platforms? The biggest market value of the NYSE is a 500 billion dollar company, and the company with the smallest market value is millions of dollars worth of companies, why should they be in the same trading market? Does this platform solve the same needs?

Finally, after the financial crisis, supervision and wind control gained more attention. If everything is settled in the same market, how can we solve the regulatory problem?

Although no solution has been given, the package has shared its own ideas:

First, the former financial world divided into two: Institutional market + retail market. The organization peers, in the information, the scale and so on aspect occupies the superiority, but the retail does the personal thing. In such a system, such as the aforementioned "Investment banking institution 20", there are unreasonable and inefficient places.

Second, the reason for not change is that finance as a public goods has always been (highly) regulated goods. The reason for not being reformed by Internet technology is largely because the rules of the game are designed to protect the industry. "Without an industry that has a political impact over Wall Street, over our investment bank. ”