Roundtable Dialogue: Internet financial market is huge

What is the impact of the Internet on the traditional financial industry? Is it a supplement, an improvement, or a subversion? Today, the WISE 1.0 site invited 360 CEO Ye Daqing, the speed of light An Zhen China Venture capital Fund managing director Mi Group and 36 Krypton Internet finance author Shen to discuss a topic related to this: the new financial proposition of Internet thinking.

Shen：

Internet finance is the hottest industry this year, not one, whether the number of newly created companies or the amount of financing, may be in our internet history to leave a landmark year. What problems might have arisen in the financial industry that could lead to such a violent growth when the internet is combined with it?

Ye Daqing:

What are the problems of China's traditional financial industry? I want to say three words. 1. The money is 2, the demand is suppressed, 3, the entrepreneur cannot enter. I'll talk about these three aspects in detail.

First of all, we all understand the money. The financial sector is China's last few of the largest gold deposits, is a 200 trillion of the market, China's loan market 76 trillion, financial management is also a few 10 trillion, insurance, and other supply chain finance, are huge market, a lot of opportunities.

Second, in fact, the financial industry is undoubtedly gathered in China's elite, talent. Service providers, but they do not provide a good service for their users. Because the service provider wants to make the user, this brings the financial repression. Therefore, the fact is: small micro-enterprise loans difficult, people do not have the concept of financial management and opportunities. Before the internet finance came out, the Chinese people's financial demand is suppressed, the loan demand is suppressed, their demand is not very well satisfied.

Again, the financial sector is a tightly regulated industry where entrepreneurs have little access. The regulatory industry is certainly profiteering, but it has become inefficient because of its exclusive benefits. How the Internet or mobile internet can change to improve efficiency, better help small micro-enterprise loans, help personal finance has a lot of room. With deregulation, entrepreneurs have a chance.

Shen：

Rong 360 faces multiple entrepreneurial path choice, why choose the current mode?

Ye Daqing:

In fact, the financial industry is indeed a lot of opportunities for entrepreneurship, we actually do a lot of data analysis, research, including also with the line of friends, investors do a lot of communication. There are some points in the logic.

First, we're looking for pain points. We did compare loan search, credit card search and financial search. Why choose a loan search? At that time, financial management is not a rigid demand, but the loan is a strong demand, rigid demand, more problems. At that time, we have a small dream, can solve the small micro-business loans difficult, can help people through the Internet and mobile Internet more efficient to find mortgages, car loans. If our search engine can solve this information asymmetry and risk pricing problem, this is of great value.

Secondly, we also compare some foreign models. The United States, Europe does not like 360 such a search plus recommended service model. Rong 360 is a completely Chinese-style innovation, and peer-to-peer, public financing, payment, balance Treasure can find the United States template. Why Melt 360? Because China's financial ecosystem, credit environment, market environment, consumer awareness, including the entire financial industry than the United States still lag behind for several decades. Our model is based on the current situation in China, we hope to solve these problems in our existing market model, when our team is very determined to do financial search, financial recommendation model, the last two years we also combined, in-depth industry chain in this credit risk assessment, large data including risk pricing to do more work. Our goal was initially very clear.

Shen：

Good VCs always make some forward-looking investments. This year, for example, the second-hand market began to fire three years ago to understand some VC has begun to layout used cars, the same internet finance in this year's hot, MI group in three years ago, and Mr. Ye Daqing began to contact, and investment in 360, we also want to know that the MI group in the last three years before the investment in the industry, How do you think?

MI Group:

In fact, we often think about the next three years, five years of industry trends. Three years ago, internet finance was not as hot as it is now. However, we think that the economic restructuring and the development of the service industry must enrich the financial products and there will be some reforms. And consumers, small micro-enterprises also need a mobile internet investment, lending tools. At the same time we are thinking about what kind of team can do this: not only the Internet experience of the team, but also the financial industry to understand the team. Ye Daqing and his entire team is very complete. In fact, internet finance is a big market, and very early, and we seize the opportunity.

Shen：

Do you think that if we do the Internet finance business now, what risks must be considered?

Ye Daqing:

To peer-to-peer this mode of entrepreneurship, the failure of the company did not do not run. The cost of fault-tolerance and trial-and-error is much higher in Internet financial entrepreneurship than in non-financial industries. So it just needs us to be professional. The threshold of Internet financial entrepreneurship is still high, requiring a professional team to combine the Internet's efficiency, technology, innovation and traditional financial logic. It also requires capital and professional guidance from capital markets. The threshold for Internet financial entrepreneurship is much higher than that of others, and the founder team has high requirements in terms of professionalism, knowledge and background.

Shen：

Back to the capital, we know that the speed of light is not too much, but always cast a fine. Now if there is an Internet finance project in front of you, from what perspective do you look at its merits or potential risk points?

MI Group:

We've invested 360, plus a pure Internet model, and a riskier bitcoin China. First of all, we value the team very much. Secondly, we will look at the industry in which pain points in the next few years is urgent to resolve. Finally, it is best to have a certain degree of competition barriers.

Shen：

The speed of light in many domestic cases are the Internet and the traditional industry, we want to diffuse, from the financial point of view, you think the Internet and traditional industries in this area, you are more concerned about trends?

MI Group:

The combination of the Internet and the traditional industry opportunities is very great. Compared with Europe and the United States, China's traditional enterprise development time is relatively short, but also after the reform and opening-up twenty or thirty years, and the brand is not strong enough. And the consumers of the last few are searching and consuming on the Internet, which will bring great challenge to the traditional Chinese industry which is not strong enough.

Let me give you three examples of how the Internet has transformed the traditional industries.

One, furniture

We three years ago to "beauty Lele" cast a round, this is a sale of furniture on the internet, the first is sold through Taobao, and then opened a number of experience shop. These experience shops have a small footprint and are not in the center of the city, the cost is very low. As a result, it gets users online, and offline provides a low-cost experience that lowers costs. This is the O2O mode of home sales, and there are barriers.
Because it requires you to understand both the Internet and the home industry.

Second, tourism + real Estate

The company we cast is called a passer-by, and it is very similar to Airbnb. We estimate that there are 60 million empty houses in China, which is a very huge resource. For example, you travel to Sanya to rent a hotel, Yalong Bay to 2000 pieces a night, passers-by do is the best five-star hotel in Yalong Bay, next to a very beautiful apartment listing rental, a night three of only 1000 yuan, this model for tourism and real estate has a very big change. Of course, it is not the same as Airbnb, it is the national conditions of the United States and China decided.

Third, the car

We voted E-generation, which is a typical representative of the shared economy. E generation driving is a Chinese innovation, if you drive to drink with friends, after the end you can choose a driver through e generation, he can come in 10 minutes. The most surprising thing about it is that it costs a lot less than a taxi. This is through the mobile Internet, the full use of personal resources, not only to give consumers a new experience, but also to those who are willing to work part-time to bring new revenue channels.

Shen：

Mi The concept of shared economy, I suddenly feel that sometimes internet finance seems to be a shared economy. We can analyze what parts of our family assets, cars, houses, stocks, bonds, may also have cash, the house shared into a Airbnb model, car sharing into the easy, Peer-to-peer car rental models, some of our financial resources to share may become the internet finance