China has a greater chance to compare with China's peer-to-peer development environment

Before discussing the "soil" of the Sino-US peer-to-peer lending website, let us first analyze the market environment facing the Prosper and lending Club in the United States. Prosper and Lending Club in the United States in the United States in the 06, 07, respectively, the establishment of the "personal financing of personal finance" platform (Peer-to-peer platform), Prosper was established in the first, its size is about half of the lending Club. The lending Club now has a total transaction amount of about $2.4 billion trillion, and earlier this year accepted Google's $150 million investment and plans to list in the US in 2014.

The U.S. personal credit market and Peer-to-peer platform operating mode has the following characteristics:

1. The United States is a credit country, the subprime crisis, which began in 2007, was that people who should not have borrowed money borrowed money from the financial system, that is to say, that every bank in the United States could borrow money, and that the borrowers on the Prosper and lending Club were basically "subprime ", that is, in a very loose lending environment, still lack of credit for people."

2. Interest rate liberalization in the United States has already been completed, and the interest rate on individual unsecured loans is as high as B. (once the overdue default rate is higher) and even the APR of the credit card reaches 18%. On the Peer-to-peer platform the borrowing rate is only 11% (3-year loans) and 14% (5-year loans), so peer-to-peer loan products have an advantage over those who want to borrow. As you can see above, the American peer-to-peer more than 70% of the borrowing use is distressed consolidation, that is, on the Peer-to-peer platform to borrow a cheap money, all the overdraft credit card amount paid off first.

3. Small and personal loans in the United States have actually done very well, with FICO ratings, credit bureau data, and American banks, represented by Wells Fargo, have done a very scientific job of pricing risk for small businesses and individuals. But the United States has a big problem, that is populated ah. So the bank can not be a cattle to every county and city open outlets, for people who want to borrow money to develop an urgent need for a lower transaction cost of choice, and grafting network Peer-to-peer platform just solved the problem.

4. Despite unsecured, unsecured and online lending, the default rate on Peer-to-peer platforms is generally acceptable, thanks to the honesty and trustworthiness of Americans and good Social Credit services in the United States. People who invest money on Peer-to-peer platforms find their returns positive.

5. The United States is a country that is excessively consuming and financially developed: overconsumption means that residents have little money to invest in peer-to-peer platforms; financial development means that Americans have a fair amount of investment channels, not just one.

In summary, the United States Peer-to-peer development of the environment is not good: The residents do not have much savings, the borrower's credit level is poor and single purpose, the bank's own personal credit service has done very well.

And Peer-to-peer in China's environment is completely different:

First, the number of Chinese residents deposits is huge. According to incomplete statistics, reached 49 trillion yuan, the development of Peer-to-peer online funding base is abundant. Second, unlike the interest rate marketization of the United States, China's individual, small micro-enterprise credit due to the bank's cost-benefit considerations and has not been done, in the face of 48 million of small micro-enterprises and hundreds of millions of individuals, peer-to-peer in the borrower's rigid demand than the United States many times stronger. Therefore, Peer-to-peer in China's development of the soil is very good. However, due to the different peer-to-peer soil in China and the United States, the local Peer-to-peer Outlook depends on the model adopted by different peer-to-peer companies.

The so-called peer-to-peer, the nature of the model is actually an Internet platform through the network to connect with the demand for small loans, one end of the connection with the financial needs of the people. So the nature of Peer-to-peer split in two is a financial platform plus a small loan platform. Looking at the essence, let's contrast the different soils in the United States and China:

Therefore, in Europe and the United States experience, Peer-to-peer is not a flash in the pan, but in the entire internet era "to the center" of the big wave of the existing financial system as a supplement. China's interest rate marketization has just begun, in this environment, peer-to-peer in China's development than in Europe and the United States have greater opportunities.