Facing the "Baby" war, China's banking industry must face up to the Internet challenge

March 18, 2014 night, Beijing University Centennial Hall, Alibaba Group Chairman Ma Yun made a public speech here.

In the face of the youth elite under the stage, and may have the future of the national leaders, Ma Yun uttered a sigh: "Sometimes, defeating you is not the technology, may be just a document!"

Analysis, Ma's sigh is from the side to respond to the central bank's previous release of the "Payment agencies network payment Business management measures" draft. According to the central bank, the "management approach" was issued to "regulate the payment agency network to pay for the business, to prevent the payment of risk", but in the opinion of industry commentators, the central bank is essentially released for the Third-party payment industry to strengthen regulation of the signal.

Before that, the state-owned commercial banks have taken substantive action: March 8, the 3 largest state-owned banks, led by ICBC, announced that they would not accept the money-fund deposit of the Internet-managed products represented by the balance treasure, and that the Fund's current entitlement to "advance deposit without penalty" would be abolished; March 12, A number of commercial banks, including the 4 largest state-owned banks, have adjusted the limit of the transfer of fast payments to a maximum limit of 5000 yuan a day; March 14, the central bank halted Alibaba and Tencent's virtual credit card products and bar code (two-dimensional code) payment and other face-to-face payment services. It is worth mentioning that the reasons for the new policy are "strengthening the regulation of Internet financial products".

As a result, an unprecedented discussion of Internet financial innovation, its influence even more than the balance of treasure when the advent of the waves.

There are two factions in the bank.

In the debate on the balance treasure, the voice of the banking industry is polarized, some think that the analysis of the balance treasure characteristics, planning corresponding measures to put on the agenda, and some in the understanding after the balance treasure and not fear, and the bank is now the main business intersection is small.

In the watchful camp, bankers ' views can be concentrated as follows: Alipay inside the idle capital return hopeless, the balance treasure will also absorb a large number of bank demand deposits; In the future, there will be more third-party companies to join, directly affect the bank's intermediary business income; Banks are currently having difficulty with similar products; Balance treasure behind the Alipay has a strong channel advantage, customer stickiness and data advantages.

The intrepid faction also has its own clear point: Balance treasure is not a product of the first nature, the balance treasure once the problem is dead; balance treasure of funds will eventually be hosted in the bank, it is impossible with the bank to rob deposits, even if a customer will bank card cash into the balance treasure, is also mostly small. And these "cock silk customers" let the bank headaches to death; Use the balance treasure Financial management is not in line with the requirements of professional financial management. From a professional point of view, if you have 50,000 or 100,000, whether it is to deposit or purchase financial products, the Bank's services and benefits will only be better. I heard a banker laughing and said: "I want to save 100,000 pieces to the balance of treasure instead of the bank to buy money, my wife does not smoke me a meal is strange!"

Basically, every point of view in both camps has its own truth, and no one is right or wrong. But the problem is that most of these views are still in the banking industry's own point of view of the balance treasure, in thinking about problems and countermeasures, inevitably with a bank of their own thinking set.

A more distinct attitude is that whenever the author sees the issue of the balance treasure on Weibo, the attitude of the bankers can be summed up as follows: All the people who exaggerate the role of the balance treasure, are not understand the financial. Wait until the balance treasure development and growth to the bankers have to beware, most people's attitude is also: if not the reason for regulation, we can release the balance treasure minutes!

In my opinion, because Ma Yun is playing an asymmetric war, if the Chinese banking industry only immersed in their own world, with the use of years of thinking inertia to look at the balance treasure this new emerging challenger, may not find the right answer and coping strategies.

The aim and innovation of Ma Yun

Retrospective balance treasure's birth experience, what Alibaba wanted to achieve was simple: let Alipay not only become a simple third-party payment tool, but also allow customers to gain on my platform, so as to enhance customer viscosity, and to deal with the future of mobile payment, the development of the era of consumption. In other words, Ali identified the big direction first and then picked the product. And after the selection of the Tianhong fund, Ali also did not directly copy the existing products of the fund company, but with the Tianhong fund, to the characteristics of the Internet, specifically designed a product to match the balance of treasure, in order to realize the balance of many functional details of the treasure, the two sides not only on the product was redesigned, Set up a set of background support system. This makes the balance treasure in response to 2013 years of "Double 11", "double 12" two network consumption pay peak, there is no problem.

On the side of the banks, currency funds are often positioned as a "defensive product" because of the low risk of money-fund funds, which are usually sold as a matching product for other high-risk funds when recommending a fixed investment to a client. In other words, this product is usually only in the overall financial investment planning, will be recommended by the bank. There are more alternatives for banks to get the same benefits as money-type funds. However, whether or not the bank has the initiative to recommend Money-type fund products to customers, the motivation and logic behind it is simple: performance and profitability-oriented. Therefore, banks will not ask fund companies to design a monetary fund, the bank's financial manager will not really spend a lot of energy to study a fund is not worth the trust, can recommend to customers, in the performance and assessment of the pressure, as long as the products can be sold, are good products.

The difference is that, Ali is the first to serve the customer's goal, only then the balance treasure. Single from the book, the introduction of the balance treasure can not let Ali earn how much money, upfront investment is very large; banks use the promise of profit consistent, no matter what kind of products, the first task is to help the bank to make money. As for whether there is really from the customer's point of view, in accordance with the needs of customers to design, match and sell products, it depends on the quality of front-line sales staff.

Wait until the balance treasure pry opened this new market, later (whether it is a bank or other enterprises) to follow up admission, is also able to share some of the benefits, but the balance treasure has become a new category of financial products synonymous. Although the balance of the product itself is not a breakthrough innovation, but because Ali in the research and development, the introduction of this product from the user point of view, the function set and detail design, and finally realize the "new bottle of Old wine" effect.

What should banks learn

June 2, 2013, Ma Yun in the "Waitan International Financial Summit" said: "The future of finance there are two major opportunities, one is the financial Internet, the financial industry to the Internet; the second is internet finance, the pure layman's leadership, in fact, many industry innovation is a layman came in to trigger." The financial sector needs to be a spoiler, and the layman is needed to change. "The idea here is clear: since we know that banks are hard to shake, we don't need to challenge you in areas that are good and solid."

In other words, in the face of such a "layman", "spoiler" and "barbarian" from the Internet, the inherent set of mind-set in the banking industry has become less so. And once you jump out of this mindset, you'll find that the advantages of the bank are already very vague.

But after months of you coming to me, the banks have been fully vigilant and act. However, from the current point of view, the bank's coping strategies in addition to the defensive introduction of the balance of treasure products, aggressive strategy or two strokes: 1. Improve the profitability of financial products, and balance treasure competition benefits; 2. No longer do balance treasure, Alipay "silent" service access side, and from the payment, supervision, quota, etc. Directly curb the balance treasure's rising momentum. The previous point for consumers is naturally popular, but the latter point from now on does not receive the effect of the bank's expectations, but let the banks and regulators stand on the opposite side of the public opinion.

The essence of the balance treasure is to provide an effective solution for the arbitrage space and the regulation of interest rate mechanism to the customers in the current financial supervision mechanism of China. Banks are opposed to the balance of the treasure itself, rather than the balance treasure has a huge space for the current regulatory mechanism.

Therefore, China's banking on the balance of the treasure to fight back at the same time, is better to understand each other, understanding each other. In addition to the policy level of factors, the author believes that the balance treasure should be the most anxious banks, should be the following:

The importance of new customers

Alipay for the balance of the positioning of the treasure is "let your pay treasure balance to make money," but because of the impact of the balance treasure, how many customers are really the balance of Alipay transferred to the balance of treasure? How many customers know the balance treasure, the bank account of the money into the balance treasure? The author believes that the latter is far more than the former in number.

That's not the most important thing. Most importantly, how many of the 81 million customers who have used the balance treasure have had the experience of investing in the fund before? How many have opened funds in banks and fund companies? The figure is rather small, based on the available research data.

In the analysis of the impact of a new thing, people often like to use the general figures to show the size and speed of development. For example, after the balance treasure a gun became popular, someone commented that the balance treasure development to tens of billions of dollars in the size of what? In the introduction of the balance of treasure before the payment of their own precipitation of funds far more than this number, even Alipay internal precipitation funds have not digested the end, want to subvert the bank?

Such comments seem to make sense, but they quickly evaporate in the rapid expansion of the amount of money in the balance treasure. According to the Tianhong fund disclosed the data as of February 26 this year, in the balance treasure existing about 500 billion yuan scale, the new customer contribution rate at least 50%. These customers, the former basic access to the bank's financial services, there is no fund investment experience, some people do not even know the difference between the various funds, but under the propaganda of Alibaba, in the media uproar and various professionals of the fervent discussion, they took their money out, bought the first fund in life. In the future, as long as the balance treasure can provide more types of financial services, as long as Alipay can continue to take prudent recommendations, reasonable sales attitude, I believe they will continue to buy.

Of course, bankers may have another word: Although many people bought the balance treasure, how many people know what the balance treasure is? How big is the risk behind it, you know? Ali is not responsible for such a trick, is it?

The author thinks, this involves the customer to pay treasure this platform use stickiness and trust degree. Because investment always takes risks, customers choose to trust Alipay, the money into the balance of treasure, it means that these customers in the rapid weighing the pros and cons, more willing to believe that Alipay brand and public trust, I believe that Alipay choose this product, the fund company is a comprehensive consideration, So there is no need to be unworthy of possible risk.

And then think about how the banks are now in the depression of the fund, call every day to push the fund, but the following dot is not sell; Look at the fund's own channels of lukewarm, you said you have similar products, you said your product design than the balance treasure sold this is still better, but why little known? The point is, Look at the fund products in those old CDI a bleak reputation, you do not find the problem appears?

"Cock Silk" the big future of financial management

Borrow a banker's evaluation: "Balance treasure from the perspective of asset management, neither technical innovation, nor how much value." This is like fast food, cola, although the likes of many, business benefits, but not nutrition. "But the balance of the treasure originally sold is fast food, cola and other foods, rather than the bank value of the" banquet.

Banks are not without the balance of treasure products. Many banks launched a "demand treasure" category products, these products in both risk and liquidity are better than the balance of treasure, the level of income and balance treasure similar, but these products have the initial amount of restrictions (50,000 yuan), so that most "cock silk" customers at a respectful distance.

That's why there are comments that internet finance is a chore. Because the balance of the introduction of the treasure looks downwind, but behind a considerable amount of time accumulation of technology and customer use habits of training. To put aside the accumulation of technical aspects, light in the use of custom training this thing, Ali spent almost 10 years, precipitated a large number of customers, carried out a variety of attempts, and finally introduced a suitable product, the total looks good, but with the bank's customer size and profit scale, or dwarfed.

But to be sure, Dick Silk financial management will certainly have a big future. Similar cases in foreign markets have been quite rich, as long as the total number of users up, the individual customer's profit is low, but the overall view is still profitable. Domestic banks because of the control of the separation of business and the slow pace of market-oriented interest rates, rely on the hand on the client can be more comfortable, completely did not go for cock silk customers, the development of the power of cock silk money.

What's more, some people scoff at part of the balance treasure customers to their daily earnings posted online with netizens to share the behavior, said this way too small citizens, too good silk, Alipay is caught people like to take advantage of the weak, like to bask in the Internet, the weakness of things, no big deal. But ask, this kind of understanding of human weakness can be understood as a deep understanding of customer characteristics? Let the customer know how much money they make every day, is it worth laughing at, or the right that the client is entitled to?

However, in other words, Dick Silk Financial model must be more sophisticated management operations, as well as the most important: the entire business operation of the idea of repositioning. To use the idea of the Internet to do finance, not to use the financial framework to limit the Internet, to use the logic of the Internet to look at the advantages of banks, do not use the logic of traditional financial industry to identify the capital of banks. This kind of thinking and positioning is the bank's most deficient.

From the current operation of several banks in the field of electric business can be seen, the bank is still using their own set of ideas to "insert" the Internet, that their own in the traditional financial areas of many advantages can also be extended to the Internet, the new ecosystem, but in effect how?

Take the construction bank's "good Melt Mall" as an example, perhaps the support of CCB can keep it alive, but it is difficult to help it into the industry's top five. And the entire electric business industry has entered the reshuffle period, the eventual survival of the large electricity dealers will not exceed 4.

The importance of "entrance"

After the release of the Balance Treasure, Huaxia Fund retail business director Zhao Yu publicly said that the future Taobao, Baidu, Tencent these occupy the network of most of the internet companies, for the fund company, it is likely that the network of "workers and peasants built." This translates into a more understandable term for bankers: later, the Affiliate fund directly to find some of the most mainstream online sites on the line. All in all, the banks have been taken off the media again.

Surely some bankers will say that our bank has its own network of silver, mall, mobile clients, tablet clients, and did not lag behind the Internet tide. What needs to be clear here is that the launch of the client is not equal to the "portal".

The survey data show that internet users spend an average of nearly 3 hours a day on the internet, but spend less than half an hour per month on net silver. What does that mean? The banks ' services are just a simple internet tool, not the "portal" we emphasize. Why is that? First, the banks launched a variety of Internet ports are in the so-called "clubhouse system" stage, only to become the bank's customers, can enjoy the service of the bank, does not conform to the open characteristics of the Internet, and secondly, the bank in the entire network of ecological chain, the chain of online shopping industry has not dominated, reduced to a relatively minor tool. Thus, although the bank launched a fairly rich network of silver products and functions, but not many people use.

Internet finance is certainly the main trend of financial development in the future, and in this trend, the importance of web portals is becoming increasingly prominent. Why should Tencent launch its own financial platform in a high-profile setting? How much traffic does the family occupy? Moreover, in the Internet finance is not mature now, mobile internet has surfaced, occupy the mainstream: from Tencent, Baidu's traffic, the PC has been declining, the mobile phone many applications are more than the PC. In this case, what can the bank do? Is it enough to make a few apps?

Truly fluent Customer experience

After the release of the balance Treasure, CCB soon issued a special research report. One such remark in the report is well worth pondering: "The introduction of the balance treasure, the biggest revelation to commercial banks should be, commercial banks in the business development must be ' customer-centric ', strengthen market research, accurate grasp of customer financial services demand, practical transposition thinking, from the customer's point of view to innovate products, optimize processes, upgrade services, Continuous improvement of customer satisfaction. ”

In addition, CCB also praised Alipay company in the financial product design of the Smart Place: the fund sales behavior defined as direct marketing, and in strict accordance with the direct marketing model to design business processes, so that the capital and assets in the transfer of the flow of the process will not transfer to Alipay company, and Alipay Company to the proceeds from the fund as Alipay to provide trading platform for the price, the name is defined as "management fee", so that successfully evade the regulatory risk.

Such praise in the eyes of outsiders, in fact, is tantamount to shouting "customer-centric", "strengthen product innovation to meet customer demand" and other slogans of the bank's face. Fluent customer experience, completely stand in the customer's use angle and use habits to develop, design products, this is the balance treasure hit one of the key factors.

The balance treasure of these characteristics, placed in the internet world, in fact, is not a very special customer experience. This is the crux of the problem. Customer-centric is not only the remodeling of the process, product development, but also not only to build a few new sites, platforms, more reflected in the user interface with each detail, customer operation in every small link.

In a word, the customer experience how comfortable how to come, do not always have a pair of "my most professional, you have to follow my logic" attitude! If the bank is not aware of this, but only to join hands to pressure the balance treasure, will only temporarily delay the pace of growth of the balance treasure, it is difficult to really keep up with the tide of financial innovation- That's the most worrying part of banking's recent moves.