Internet financial Entrepreneurship said: online micro-loans, smaller than small loans

the user.

In China, where is the market smaller than the small loan?

The credit payment for the digital entertainment industry is quite different from the traditional credit card business model. In China, the biggest problem facing online payments is the security of payments, which is widely questioned by users. We found in our survey of users that 70% of users gave up their online payments because they didn't want to give them personal information such as the number of untrusted apps, their names, their ID numbers, and so on.

In the research, the online game players even appeared in order to pay on the internet and separate processing a small credit card phenomenon. In addition, in the digital entertainment industry, consumption is usually dozens of to hundreds of dollars. Not a large amount, not to be repaid in installments.

So we will position the credit payment for the digital entertainment industry security, no card payment, through the mobile phone number can be trusted, after the letter feedback amount, and complete payment. After the loan by the automated collection process completed, en-wei, there are incentives repayment measures, there are default punishment measures.

The basis of credit is derived from the data, the credit can be done in real time. Credit data include operators, UnionPay, central bank credit, peer-to-peer lending institutions, and third party data. In addition, based on the experience of American ZestFinance Company, all user behavior data are used as credit data.

ZestFinance company found that the user's stay on the site, the application form when the letter of the habit of writing letters and other data are related to credit or bad debts. PP Wallet After the integration of various data sources, and then classified as user identity data, behavioral data, social data, speculative data, and finally based on the data to calculate the future of the user possible behavior.

Is it true that online credit is established through data in China?

The construction of credit system lies in the model, but it is the data. Currently, user data is not only "fragmented", but "less".

Data "Fragmented", from operators, banks, insurance, brokerage to Peer-to-peer, are regarded as the data for their own plots, unwilling to share with others. In foreign countries, all banks, credit card centers and lenders will synchronize their data with FICO in real time. In this "sharing" on the basis of the FICO credit scoring model, can be used across credit card transactions, loan repayment records, the number of sources of arrears, user credit hard Query the number of data.

China does not yet have the same "center" as FICO, and the coincidence of data is small. Take our data exchange with another well-known data company, the coincidence degree is only 6%, to some extent, it explains the fragmentation of Chinese data.

Then there is the data "less", China's credit card penetration rate of about 25%, even if the Chinese credit card data to integrate, it can only cover China's 25%, and basically is the one or two-line city data, this part of the people do not worry about money.

At the same time, the demand for credit payments comes from groups that have a huge difference in spending power and willingness to spend--no money, but want to spend money, concentrate on middle-and low-income people in the two or three-line cities, or younger groups such as college students who haven't yet applied for a consumer loan or credit card. This part of the people, the current credit data is not covered.

Development of foreign online small loan

Foreign online small loan development has been very fast, from short-term credit card repayment loan Wonga, user growth system loan lendup, to the consumption of loans affirm and university student loan Sofi, by the complete data credit system and social network channel rapid expansion.

Not only is the individual-oriented loan fully online, but even enterprise-oriented loans are being transferred online, such as OnDeck and Kabbage, which will be able to complete the letter to the merchant within 5 minutes through corporate credit and social data.

The development of China's online small loan

At present, it is the rapid development period of China's online small loans, a large number of start-up companies are emerging, each occupy a segment of the market, such as consumer loans, credit card repayment, loan redo, student loans, car loans, real estate loans. Separate and fight alone.

This will not last because the loan industry is economies of scale. First, before the legal compliance of loan asset securitization, the size and cost of lending funds determines how big and profitable small lenders can be.

Second, the size of the data determines the validity of the line before the loan. For online small loans, before the loan almost overwhelming loan, after the loan, the most critical. How to use a variety of data before the loan, mining and predicting the potential default of users is the biggest challenge to online small loans. All this has decided that singles are not a long-term solution.

"Sharing" will become the key word for the development of small loan in the two-year line. Sharing user information, sharing user blacklist, whitelist, is online small loan to reduce the rate of bad debts will take the first step, but also to fill the Chinese credit system data 75% missing start.