Internet finance, a little bit of big data fooled it!

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For internet finance, the internet industry and the traditional financial industry views are often very different, the former think the internet is the focus of finance is only the next to be overturned specific industries, but because of the financial industry's high threshold and strict regulation, the subversion process will be more tortuous, the latter is that the financial has its own completely different logic, Credit and risk is insurmountable threshold, the moat high build, internet finance can only in the Internet enterprise of an acre of three acres of entertainment.

But for big data, the two are rare to show an unprecedented consensus. At the IFC1000 Global Financial summit on October 30, the financial community unanimously declared that big data is the biggest bright spot in internet finance, because the big data in the solution to the core financial issues-------------------------------- The only way to Internet. And then the Internet people (many Peer-to-peer lending practitioners and network credit practitioners) have also made speeches, introducing their own experience in the large data examination and credit and credit evaluation. For a time, constellation and IP qi, form a common Atlas color.

I was finally--asleep.

It is no surprise that such an astonishing consensus has emerged because the theme of this meeting is "big financial big Data Strategy", the central idea is clear, "Big data" is the keyword that appears in all guest speeches. However, in the end, the large data in the current Internet finance should be in what position, I think there is a lot to explore.

Anyone with a certain knowledge of the field of data knows that big data is not a new concept, it has been put on a variety of coats, have a variety of dreams. From the earliest stories of Wal-Mart beer and diapers, to the recent precision marketing and unmanned driving, data analysis does have successful applications and is increasingly integrated into everyday life and business decisions. But data statistics and analysis are different from large data, and even data mining is far from the ideal of large data advocates. In the current mainstream Internet financial applications (such as peer-to-peer lending, public financing and supply chain finance, channel Finance), large data is not a very important factor, the application time may not be mature.

Data is derived from discrete sampling of phenomena and behaviors, which is the digitized projection of the objective world, and whether the projection is accurate depends on the way, frequency and dimension of collecting, acquiring and collating data. The discovery of unknown, valuable information and laws from the data does not depend on the data itself or the algorithm, more on the "person", on the perception of phenomena and behavior by the "person", and on the data insights obtained by overlaying the knowledge with the data collection and analysis. Most of the algorithms and models are only the result, the formal manifestation of human cognition and insight.

The development of computational ability and intelligent technology provides a better tool for data collation and analysis. The 4 V (or 5 V) of large data highlights the increased difficulty of data processing, even though they naturally contain more valuable information, it does not mean that the cost of access to information is reduced, nor does it mean that data is everything (under current data acquisition and processing capabilities). Regardless of peer-to-peer lending data, or network credit data, it is hard to believe that their volume can be how much, change speed can be how fast, so that can be stained with the theory of the so-called large data edge, and then need to use large data technology and means.

There is no doubt that the financial industry is born with large data, naturally has the incentive to optimize large data processing, and thus reduce the cost of credit evaluation and wind control. In the pursuit of maximizing profits, large data processing belongs to the inherent innovation power of the traditional financial industry, if the time is ripe and the cost is pleasant, they will pounce on them themselves, without the need of Internet enterprises (to acquire a data processing company). The traditional financial industry's expectation for big data is more about the integration of social networks, electronic business data and financial data. This is not a trick, but fully aware of the difficulty of the problem and the limitations of data resources, the proposed joint research proposition, which in itself means that the effective processing of large data is not a matter of overnight. For the traditional financial sector, this proposition is pragmatic and reasonable, but for the time being, it is not the majority of Internet financial enterprises.

Most of the Internet financial enterprises are still small (the only exception is Ali), the user size and turnover is small, the lack of large data base, and can not afford large data infrastructure and processing costs, more importantly, there is no urgent need for large data. For example, peer-to-peer lending industry, whether relying on network audit or offline audit, the loan officer's experience and due diligence is much more important than the big data, the cost is also more economical. At present, the O2O trend of Peer-to-peer industry shows that under the specific credit and data environment in China, the importance of offline work far exceeds the pure data analysis. Based on data accumulation, adding new materials, such as constellations, IP, and social maps, might actually help with risk control, but its role should still be based on a timely interaction whereby borrowers are initially screened, inspected and revisited, rather than superstitious, because of the integrity of the data, Authenticity and consistency are not easily guaranteed in the current data environment.

Some commentators believe that peer-to-peer industry increasingly offline, undermining the Internet and data processing to effectively deal with the development trend of credit risk, is to open the industry reversing, indicating that the Internet financial increasingly mediocre and no new ideas. This view is in the same logical trap as the big data: it is too superstitious about the "core" technical characteristics of internet finance, but ignores the diversified performance of technology and the external power of Internet financial innovation.

First of all, internet finance relies on internet technology, but a thorough solution to the so-called core issues (credit and wind control) is not necessarily the primary goal. The advantages of peer-to-peer lending, for example, include the expansion of lending channels, the increase in the number of people involved and the increased efficiency of lending. In financial markets where traditional finance cannot and will not be covered, peer-to-peer lending has the role of filling market gaps and popularizing financial services, and it must first address the question of whether a particular group of financial services is available. As the balance of treasure in the money, it does not have to solve the problem of the Fund itself.

Second, the Internet finance provides a more diversified financial services, Ali small loans to their own eco-circle of users, the public financing for entrepreneurs to provide a relaxed financial environment, intelligent financial management makes low net worth customers do not have to spend expensive financial consultancy fees. The reduction in the cost of financing may come from a reduction in the cost of wind control, perhaps from the savings of channel costs. According to Pareto improvements, internet finance is on the right path as long as it improves the financial situation of some people without causing the overall state of the financial sector to go bad.

Thirdly, the subversion of the old industry by the new industry is never necessarily a direct solution to the core problem. Can internet education directly solve the problem of poor quality of education? Can e-commerce directly solve the problem of sales? Can social media directly solve the problem of high quality production of media content? But they still have an unprecedented success. What they change is only the logic of the industry; On this basis, the user experience promotion, the industry resources reorganization, the core question actually began to improve quietly.

The development history of the online tourism enterprise Ctrip is a typical case--10 years ago, Ctrip vigorously develop offline channels, in the airport, railway stations, hotels and the overwhelming dispatch of the salesman to send business cards, is referred to the Internet enterprises in the name of the line of the organization, but to obtain adequate development. The Internet environment at that time decided that similar enterprises can not rely on the internet to survive, online under the combination is the king. 10 years later, Ctrip has become a liability for further development because of the large offline organization. This case fully demonstrates that the argument is unnecessary, the key is to do the right thing at the right time.

And the current Internet finance, just like 10 years ago in the online tourism industry, to solve the core problem directly to achieve short-term explosive subversion is not realistic, for the traditional financial institutions of the comments (such as Internet finance can only be supplemented, the impact of internet finance on banks, etc.) also do not have to care. Look at the sky, play the big data, that is the future things, do not need to be the preferred item, down-to-earth, to develop their own market segments, to maintain a good segment of the user, the necessary data records, in the control of the overall risk and cost, the use of Internet technology and thinking in the blank market, emerging markets to serve as many people, Is the most important thing at the moment.

After the development of the next few years, when a spark began to start a prairie fire, the credit rating and wind control really become the core competitiveness of the traditional financial industry, the Internet finance may need to face the big data problem--of course, then it will be really late.

In short, the big Data myth and the online operation of the criticism reflects a one-sided technical trend, overweight technical perspective will only erase the internet finance in the transaction subject, trading channels, user experience, general thinking of the great advantages and innovative value. The current Internet financial companies are not going to be fooled by the big numbers-just don't get yourself fooled.