Microfinance Banks get the spotlight

The first private bank of China's former maritime micro-bank recently officially trial, because of its unique internet genes, access to the spotlight.

Since the reform and opening-up, China has never officially opened up the market access of private banks; Therefore, the first opening of micro-banking, the entire Chinese financial sector is clearly significant.

First, the Internet bank to promote the integration of production and integration into a new height. Since 2013, internet-goers have been developing in the financial field, but they are also controversial. The opening of internet banking has made the relevant questions away. Internet enterprises will inject unprecedented internet thinking into the financial industry, and the integration of finance and Internet technology and Internet will produce a new financial ecology and create endless possibilities.

Second, internet banking has become a breakthrough in banking reform. The internet banking mechanism is flexible, dares to innovate, is good at innovation, expands the general benefit finance and so on many business areas, and China's financial deepening reform many ideas to coincide. Internet banking represents a reverse incentive mechanism that helps break the monopoly and inertia of China's financial industry. A series of outstanding deposit insurance System, information publicity system will be broken out of the cocoon, will drive the financial system to improve the system.

Third, internet banking will reshape the financial competition pattern. The Cross-border journey of Internet enterprises is far from simple product and technological innovation, but a revolutionary reconstruction of the financial system pattern. China's financial sector in the growth stage, the industry profit is significantly higher than the social average. In the short run, the Internet bank is just starting to start, the volume of business, product category is not yet a traditional bank, but in the long run, the Internet bank will gradually build up against the traditional financial institutions of the overall competition pattern.

Of course, despite the menacing internet banking, traditional financial institutions have not been defeated. The success factors of internet finance mainly include the advanced technology such as cloud computing, innovative and cooperative internet genes, customer service experiences, aggregation and mining of large data, open and shared platform economic models, focus on small micro customers, creation of new financial rules, and diversified cross-border operations, but internet finance already has advantages not unbreakable, The advantages of electric business platform are not equal to the advantages of financial platform, and some professional advantages of traditional financial institutions cannot be replaced by internet banks. With the deepening of the reform, the traditional financial institutions focus on the fundamental impetus of the Internet financial innovation, based on the nature of financial services, speed up the transformation and upgrading of services, is trying to catch up with this round of innovative trends. Traditional financial institutions should build up the courage of their own revolution and be brave enough to "operate" on their own, and put the real internet gene into the body and get rid of the status of followers as soon as possible.

Internet Bank has its rationality, it is the product of Industry 4.0 innovation tide development to a certain stage. Government regulators, of course, cannot ignore the increased risk that it poses to its own fragile domestic financial system.

First of all, the high risk of private capital to the banking industry, as well as the high requirement and difficulty of professional management and risk control, even the traditional thinking, that is, the bank is related to social stability, even if the loss or failure, will be implicitly guaranteed by the Government. Again, the Internet financial innovation is changing rapidly, at the same time, the liquidity risk caused by the large amount of capital become a sword of Damocles.

Second, Internet capital may not be sufficient to supplement bank capital. The bank's demand for capital is very high, and with the rapid expansion of business, the dynamic replenishment of large capital becomes the norm.

Third, internal controls and associated transactions may lead to a cross infection of risk. The combination of production and integration is often accompanied by internal related transactions, possibly through the control of subordinate financial institutions to the industrial subsidiaries of some risk-taking behavior, or even "fill hole" phenomenon. Although the problem can be temporarily covered up or even mitigated, but the risk accumulation, once a subsidiary or link problems, it is easy to produce a ripple effect.

Finally, the failure of resource integration can lead to management turbulence. Banking business culture and management requirements and the Internet and other industrial groups have great differences. In the operation of Internet banking, we should pay attention to the commonness of group corporate culture, have proper control over financial business, and take full care of bank's individuality. If there is no benign interaction between the two, it is bound to endanger the company's management.

Therefore, how to make use of this new financial form to transform the existing domestic banking industry and to give full play to its "catfish" effect to promote the healthy development of the economy is a long-term task for the future banking industry.