The cold thinking of internet financial craze

Absrtact: The cold thinking of the Internet financial craze now China's science and Technology circle, the hottest but internet finance. On the afternoon of 13th, the Internet Finance division of the 2013 China Internet Conference was packed with Uguan hai people, even more popular than the main venue. Sat on the audience

The cold thinking of "Internet financial craze"

China's current science and Technology circle, the hottest but "internet finance."

On the afternoon of 13th, the 2013 China Internet Conference "internet finance" was crowded with Uguan hai people, even more popular than the main venue. Sitting on the floor of the audience constantly shaking the hands of the object as a "fan", efforts in the brim of the meeting to obtain a trace of cool.

The audience of nearly thousand people, there are media throughout the country, there are investment consulting and microfinance companies practitioners, as well as internet finance entrepreneurs. One of the driving forces they came in from all directions, it is because this forum is almost the most widely covered, the most specification of the "Internet Finance" professional Forum: Speakers included the People's Bank of China Deputy Governor Liu, Ministry of Commerce E-commerce and Information division director Nielinghai, in addition to CIC, China UnionPay, Representatives of financial institutions such as the Shenzhen Stock Exchange and ICBC.

Internet finance companies will naturally not be absent. China's largest peer-to-peer company letter, recently completed the financing of the 360, good credit nets, wing-lung loans and other companies in charge also appeared in the venue. In addition to the appropriate letter, the rest of the company also joined the University, Securities Research Institute and other aspects of the establishment of a "Internet financial thousand People's Association", hoping to become the industry authority of the exchange and sound platform.

Over the past six months, "internet finance" accumulated heat as if in this forum focused on the outbreak. The original concept of "internet finance" was gradually clear in the discussion, and more and more cold thinking appeared gradually.

The three major types of internet finance

From Ali small loan to Peer-to-peer, and then to Alipay balance treasure and credit payments, the current Internet finance has three major categories:

The first category, the traditional financial business of the Internet, such as the major banks of the online banking, online securities. This kind of business moves the traditional financial business to the Internet, the Internet is a pure query operation, sales platform. Traditional banks have basically opened online banking business, but subject to the banking industry's internet product capabilities, online banking experience most of the worse, over the years by users criticized.

The second category, the Internet enterprises to develop financial services, this type is represented by Alibaba Group, the main business forms include Third-party payments (Alipay), small loans (Ali small loan) and fund sales (balance treasure).

Third party payments in the country is already not new things. Alipay was founded in 2004 and the number of registered users has already exceeded 700 million. In addition, China's third bank payment licence has been issued more than 250, including the Internet to pay the number of enterprises nearly 100, the remaining 150 more than prepaid card companies.

Microfinance is not a bank patent in our country. In addition to the bank, there are some special small lenders in the country to operate the business. Ali small loans are unique at the beginning of the pure Internet companies into the field of small loans, and lending to the client are Ali platform sellers.

Balance treasure is the emergence of this round of "Internet finance" hot fuse. June, Alipay joined hands with Tianhong fund, which sells financial products such as money funds provided by the latter at the official website of Alipay. 18 days later, the balance treasure announced that the number of users exceeded 2.5 million. Balance Treasure mode, Alipay is still only a sales channel. In fact, Alipay has been working with some of the domestic funds, into the latter's official website to become one of the payment channels. Taobao also started selling financial products at least April this year.

The third category, the financial integration of Internet technology innovation business, mainly refers to peer-to-peer and public financing. In Peer-to-peer mode, borrowers issue their own borrowings through third party websites, and investors lend by bidding. The process of the transaction is complete on the network, but the third party website does not handle these loan funds. The main domestic peer-to-peer sites include Yi Xin, everyone loans and wing long loans.

Public financing refers to the individual or enterprise to put the financing items online, the general public can make unequal amounts of investment and gain, and the Web site through the financing of the Commission to benefit. The world's most successful public-Kickstarter site is the United States. In order to promote the development of start-ups, the United States also used a "JOBS" act to legalize public financing. The public financing mode has not been approved by the government in our country, and the lack of supervision will lead to the illegal fund-raising. Our existing public-funded websites include roll-call time and dream-chasing nets.

In addition to the above three types of models, China's current more popular also includes 360, a good credit network such as the loan product search platform. These sites provide information on a variety of loan products, but the actual lending process is the direct link between lenders and borrowers, and the process is still directed below the line.

Cold thinking: Complementary more than subversion

Huang Liming, deputy general manager of Shanghai Lujiazui International financial Assets Trading Market Co., said that the existing Internet financial model is not yet subversive.

"Internet finance and traditional financial institutions are now more of a complementary relationship. "Huang Liming said. Online Banking, he argues, simply moves traditional banking to the Internet, making banking institutions more powerful. And the second model, whether Alipay or balance treasure, can not be separated from the traditional banks and fund companies support.

In addition, according to data previously disclosed by the China Payments Clearing Association, China's third party paid about 6 trillion of the turnover in 2012, while domestic banks paid nearly 800 trillion of their online transactions. It can be seen that the third party payment in the entire online payment transactions in the market accounted for is not large.

"Peer-to-peer and public financing are two types of business that the traditional financial system does not see." "Huang Liming said that Peer-to-peer and public financing generally relatively small, traditional banks to these businesses are basically" abandoned "state, it is difficult to say that the development of the two will impact on the traditional financial institutions lending business. In addition, the industry is still divided on the size of the two types of business development space.

On the other hand, traditional banks are not doing nothing on internet finance. ICBC, for example, in 2006 to launch a network of online revolving loans, 2007 development Network Business credit loans. 2009, ICBC set up the first banking network financing service organization. At present, ICBC's network financing balance has exceeded 200 billion yuan, the cumulative issuance of loans of 1 trillion yuan.

Huaxia Bank is another bank that has tentatively operated on internet finance. Huaxia Bank's "Platform Finance" project in 2013 has accumulated 11,000 loans, this figure is three times times the whole year.

Three ways to Subvert

Huang Liming that the internet finance to subvert the traditional financial path to achieve the main three:

The first is to solve the problem of excessive operation and transaction cost of financial institutions; the domestic banking service outlets are about 200,000, each of which has an annual operating cost of about 5 million. Internet companies can cut huge operating costs through online management and user-defined products.

The second is to solve the problem of capital liquidity; now the real economy is short of money, and many small and medium-sized investors lack good investment channels, which leads to the contradiction between supply and demand. The internet can solve the information asymmetry between the two, let idle money flow.

The third is to solve the financing demand of small micro-enterprises, especially the individual and self-employed businesses. Our country now has 40 million households, the average financing demand 50,000. To Ali small loans For example, the Internet financial system in this respect has incomparable advantages. Once the Internet financial system matures, the traditional financial system is hard to contend with.

Huang Liming that the above subversion path is premised on the establishment of online credit system: "Internet financial development in the last few years, completely dependent on the establishment of the Internet reputation system." If the Internet's credit system is built faster than offline, internet finance must run faster than offline finance. "To Ali small loans For example, Ali can be based on their own platform data to do risk control, but Ali could not know the borrower on other platforms of the loan situation and credit situation." Therefore, internet finance is still to insist on the spirit of Internet public sharing, so as to facilitate the formation of online credit system. "Islands of information cannot form an ecological circle." ”