Internet Financial Puzzle Bureau

The term Internet finance has been hot in the past year, promoting the factor is Ali's balance treasure, through Alipay payment tool, will be an obscure fund instant speculation hot. One interesting footnote to the big heat is that a newspaper writer who writes about internet finance has been touring around the country last year, reportedly earning millions of dollars and showing how much the market is concerned about the topic.

A media friend asked me what internet finance really was because of writing articles. In my opinion, this concept is indeed very complex, peer-to-peer so-called everyone loans are internet finance, the public also seems to be, in addition, whether Ali's balance treasure or Tencent Micro-letter financial management, also within this category. It's still necessary to get a little bit of a reason.

The stakes are very high for projects like Peer-to-peer investments. A similar platform has been reported to the owner of the money to walk the news. This and a few years ago the so-called underground banks have similar, the risk even more than the underground banks, the latter at least some of the so-called private friendship, slightly know the details. In China's current soil, this direction is very difficult.

This vein, in foreign countries in favor of investment (in fact, and everyone loans, and so on), but in China, after all, there is the so-called "illegal fund-raising crime" such a felony, China's public financing is the so-called "pre-sale" mode. Pre-sale model of the participants are consumers, not investors, and the project itself does not have any equity relationship, nor investment returns do not return. There is a saying is that the public is to buy, there are three points of truth. Since the pre-sale, its essence, indeed and financial very far.

The most fire is the Internet wealth management products, bat Three giants have dabbled, prone to annual rate of seven or eight points. This belongs to the Internet financial products sales, to say the truth, the picture is a convenient purchase, to say how generous returns, it is not to mention. The annual rate of 7%, not to say that you spend the money every day equivalent to the annual rate of 7% of the return, floating up and down, it is often.

My view is that the sale of Internet financial products, the target consumer or low-end users. In the real sense of a little money, the return on this product is too low. Have a six-digit number of spare money, you can go to buy renminbi financial products, there is a seven-digit number of spare money, then and the bank to talk about the agreement deposit well, the guaranteed income is far more than this treasure that pass--in fact, the treasure that pass behind the money fund, a large piece of income is the annual interest rate and the agreement deposit spreads, a bit to earn zero difference

Financial industry, in fact, is not too much talk about "long tail effect", the core rule of finance is to make money. One of my students joined UBS to do private banking, and the threshold for becoming a client was millions of Swiss francs. Why does the long tail effect not play? A simple fact is that a large proportion of the wealth in the small proportion of the hands. China's Gini coefficient is very high, the average number of ordinary people, together with the money, not the top of those relatively few rich people. And they are the people that the financial industry really values. Even the stock market that everyone can participate in the game, is also the so-called main makers, not small retail.

Recently released news, said the national gold securities and Tencent cooperation, to join hands to create a network brokerage and so on. I looked carefully, this cooperation is in the end the brokerage business area, mixed with some so-called wealth management products to sell. I have been in the securities brokerage business in 02-04 years, the so-called 0 Commission in that era has begun, is not a gimmick. Securities market to open the door to deal with the user or to personally, it is difficult to remote operation through the Internet (especially the sales link), this cooperation can attract the number of new accounts, is not good to say. As for what take the QQ number can fry tickets, most of the content. To be honest, brokerage business, in addition to the cost of households this ring, the network degree of ten years ago has been very high, and today to further network, space is very limited.

Internet financial Sales, the essence is to make users more convenient to touch, this matter does have its meaning, but to say how high the meaning of the law, so that to shake the entire banking industry, it is premature to put words.

The funny thing, though, is that bankers are jumping out of their wits to keep up with the times. It seems that even the bankers have to pay more attention to things. That's how I read it. Chinese bankers, in the final analysis, are all state-owned cadres, making similar public statements, rather than putting them into action, rather than being old-fashioned. Do this posture, in the end to WHO to see, we all know.

My vision of real potential is similar to the business of Ali small loans. The business uses its own Taobao platform to skillfully solve the problem of the creditworthiness of borrowers who do not have the assets to mortgage, and to use their usual water to control the risk of bad debts. Bank three business: deposit and loan sinks, Ali small loans to find a loan this link a bit of a breakthrough. But by the relevant policy restrictions, the current Ali small loan itself is not large scale, but its business logic is correct. And it is the real sense of the Internet finance: No Internet (Taobao cat platform), the business does not turn. And many so-called Internet financial projects, but the skin of a piece of internet finance, just use the internet propaganda.

Further down, the use of the data generated by the Internet to carry out financial product innovation, is not to be? Trend is possible, but in two or three years fear is just an unrealistic dream. The risk of financial derivatives, the 08 by the subprime mortgage caused by the global financial crisis, so that countries are very careful. Especially in China, it is difficult to form a climate in a short period of time.