Internet finance absorbs gold bubble controversy or spawn new giants

Source: Internet
Author: User
Keywords Internet finance new giants gold bubbles

Author: Lixiangdong

December 1, located in the "personal asset Butler" of the Internet financial companies to dig a fortune to complete the B round 50 million dollar financing, the new investors to join the broadband capital and CICC, a round of investors idg, Ding Hui, qiming and other investment. The financing of digging money represents the complex mentality of this year's capital investment in the field of Internet finance.

Internet finance in the three major directions Peer-to-peer network loans, internet finance and equity, Peer-to-peer has always been the absolute hot spot, the digging money to obtain large B-round investment, coupled with the previous favorable net, the fire net, Yingying Financial declaration has been announced to invest, indicating that the Internet Integrated financial management field has also begun to get the capital of high concern.

Some experts believe that the current trend of capital crowding, has hidden the trend of bubble, but practitioners believe that the internet finance is only just beginning, even if overheating is also phased. The most important thing is, miss the electricity business feast of capital, do not want to miss the Internet finance is the consensus of the hot spot, or even the TA mentality, more experts predict that the industry or in the next year, the Battle of quality mark.

People's finances compete for low cost

The rise of internet finance is almost synchronized with the rapid growth of mobile terminals in China. Users need to manage their own assets, finance and invest on their mobile phones. Internet finance companies aim at what these traditional banks do not want to do, a huge number of mobile phone users have real demand for business.

Dug money was founded in 2009, is originally a dedicated to help users to account for mobile phone applications, because the user needs and constantly improve the update, has become Apple application software ranked first in the accounting application. By the end of October this year, nearly 100 million users have been downloaded. Users meet the need to manage cash in and out, began to hope that accounting software also provides financial functions, digging money in July 2013 began online finance supermarket, to provide standardized funds, financial products, positioning has gradually become "personal asset Butler." ”

The problem with digging up wealth is how to turn the accounting group, which accumulates on free services, into a group that buys wealth-management products and even invests by digging up a wealth platform, thereby transforming it by providing value for the channel. It is not easy to achieve this. Although the same companies in the market to enter the perspective of Internet finance are different, but the same way to meet the user's financial and credit needs in this direction.

Internet financial companies have emphasized the use of Internet means to achieve the traditional financial business and ordinary people docking. Since the emphasis on Internet thinking, naturally also emphasizes the value of channels, traffic and access is still the most important internet financial companies, the inevitable market share war. Digging Finance CEO Li Zhi said, this round of financing mainly to two directions: first, technology research and development, the second is marketing. "Currently 100 million users just download the number of active users per month only about 5 million." Through the promotion if the active user to achieve 100 million, then the platform value can be maximized, a variety of applications and requirements can be developed. "Li Zhi said. After receiving investment in August this year, Ye Jinwu, its CEO, has said it will focus on developing young users ' internet banking habits.

For internet finance companies, traffic highlights the most valuable resource, and the portal further requires enterprises to increase user viscosity through open user contacts. Each company through the competition of flow, solid foundation, and then in the financial services market driven, the channel cost advantages highlighted. In this case, banks and financial institutions will be driven by the flow of demand to move the business to this low-cost Internet channel. At present, the market is known to the Internet financial companies are the operation of this idea. The difference is, ultimately, who wins the competition is the cost of the lower.

"The trend towards integration of finance and the Internet is very clear, and the basis for such integration is data," said Tian, chairman of the investment and broadband capital. Digging money spent 5 years accumulated hundreds of millions of users, from the accounting app data to help users understand the assets, through the financial supermarket to help users to achieve the optimal value of assets management, the Internet and the financial two organic integration. ”

At present, the Internet to promote very burning money has been the consensus, not only in the field of electricity, in the Internet financial sector is the same. The high cost of promotion directly pulls up the cost of getting passengers and operating costs, and ironically, the cost advantage has been seen as the weapon used by internet finance to challenge the traditional financial industry.

After solving the "basic problem", the Internet financial companies to compete with the non-standard products to the standard product "upgrade capability." Standardized products are the current Internet financial companies are doing in the Monetary Fund, short-term banking products, and so on, small risk but low profit, and non-standard products range, including supply chain finance, peer-to-peer network loans, factoring business, high profits but also a large risk. Most financial products in the market are too complex to deter ordinary users.

From the experience of the United States, more than 90% of the non-standard assets of the participants for the organization, and then the organization to introduce standardized financial products to meet the needs of ordinary users of financial management. Fireball Network CEO Mengqingbiao said: "The Internet financial companies to do is to ensure profitability, security, liquidity and so on, under the premise of the user to bring a simpler, more convenient financial experience." "Digging Wealth president Gu Chengwei also said, digging wealth is also developing non-standard products, the current in the overall financial services in the proportion has accounted for 30%, the future of non-standard products will be the focus of direction." The difficulty of developing non-standard products in the technology, two in the risk control, for this to dig money has formed more than 10 people's wind control department. He thinks, does the non-standard risk is digs the wealth first to consider, second is the income. The risk control is not good and high returns cannot be achieved stably.

The new giant will be born in Internet finance

Internet finance has greatly expanded the participation of the financial business chain, from investors to borrowers have multiplied, this is a huge market. Shan Xiangxiang, Secretary general of China Internet Financial Integrity Alliance, said that 2013 was the year of Internet finance, until 2014, the keynote of policy regulation was to encourage innovation and encourage the use of information technology to serve the real economy.

With the encouragement of the policy, the development of Internet finance is beyond everyone's imagination. Also in this context, the capital began to pay high attention to Internet financial enterprises. And another background is that, in the last investment cycle, many of the capital missed the opportunity to invest in electricity, the current with the Beijing-east and Alibaba listed successively, the electric business pattern has been relatively stable, investment opportunities are not much, and the rising internet finance naturally become capital and the Giants will not let go of the blue And hope that this field will be born bat such a giant class enterprise.

Chanhaili, an analyst with the Internet finance Department at China's E-commerce Research Center, the value of digging money is through the humble bookkeeping, training users to manage the assets of the habit, and through its "accounting" "Money housekeeper" "Digging Treasure" series of apps, as well as digging the financial forum to stick users to the platform to generate trust. At this time, the platform to broaden the scope of services, the introduction of new products to adapt to the Internet, natural and logical. As of August this year, the sales of money-digging supermarkets has exceeded 10 billion yuan.

Training the user's financial habits, by Li Zhi called "Wealth Quotient Education", in fact, the Internet financial enterprises in the development of finance business, marketing costs are almost all concentrated in this. Previously, there have been enterprises to send users 1000 yuan to experience the activities of financial management, the benefit of the experience, in order to educate users to use Internet financial tools. And Li Zhi also said that after getting the B-round financing, will start a number of rounds of promotion, including open an account to send 8888 Yuan financial plan, non-standard full rate hike plan and investment income doubling plan.

However, Chanhaili that, despite the broad prospects of the Internet financial industry is unanimously optimistic, but if like drip and fast, such as taxi software, internet financial Enterprises also set off a subsidy war, will make the main body is numerous, the competition is very fierce industry facing more intense competition. "Although the capital is highly concerned about Internet finance, there is not a clear business model in this area, and there are few profitable companies." In this case, investors are trained only to pursue high returns, enterprises have to push subsidies to rob share, which will make the profits of enterprises more distant. From this perspective, investment in the internet finance industry has been overheated. "But she believes that in this overheating, there may be a capital scramble for quality targets next year."

Apparently, Li Zhi is hoping to become a "quality standard" in the analyst's mouth. He said that the financing of the second round of digging money is more for the introduction of strategic investors, such as the introduction of the "financial national team" in the gold, is to dig for money in the future with financial enterprises to pave the way, and CICC's first investment in the Internet financial enterprises, but also expressed China's top investment Therefore, he does not agree with the view that Internet financial investment is overheating. He is also an angel investor. He believes that internet finance has just started, even if the current local overheating is only temporary, "this area will certainly produce Alibaba-level enterprises." ”

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