The competition between "innovation" and "tradition" in finance

　　Balance treasure in Online 8 months after the scale of 400 billion, the scale of the rapid climb at the same time also harvested a large audience of praise, so, the balance treasure in the perception of standing in the forefront of the public opinion.

When CCTV commentator Shinwen published on the Balance Treasure "vampire", resulting in "corporate financing costs sharply rise" after the comment, the balance treasure big controversy also unfolds. One side of the view is that the balance treasure is the embodiment of marketization, the other party calls for the need to strengthen the balance treasure supervision.

The two positions are inseparable from the rivalry between the traditional financial institutions and internet finance, and the rivalry of these two industries is inseparable from the two points of profit and culture.

Some financial industry analysts believe that this debate reflects the Internet culture and financial culture conflict, is the traditional financial institutions and other vested interests in the face of the changes in the market environment, perhaps this debate will last for a long time.

　　Hongyuan Securities Research Institute deputy Director Yi Huan that traditional financial industry has certain misunderstanding and conflict to internet finance innovation. But he also argues that it is normal to have a variety of controversial voices in the early stages of a major change , and that is a manifestation of rationality, which helps innovative internet finance consider risks.

The dispute between "traditional school" and "Innovation School"

The reason why there is a "traditional faction" called for boycott or supervision of the balance treasure, to a certain extent because the balance of treasure is no longer a conceptual impact, but has had a substantial impact.

The balance treasure scale is 400 billion, the Chinese resident savings deposit has 43 trillion. While the balance is less than 1% per cent of total household savings, the traditional financial institutions are worried that the flow of household deposits to Internet wealth management products is very fast and beyond expectations. According to central bank data, 940.2 billion of deposits were flowing out of the bank this January.

Once worked in Citic Securities, now everyone is the chief executive Xu Jianwen that, when the balance treasure scale is growing, the bank has three impact:

First, the bank funds move seriously, increase the risk of bank operation;

The second is to raise the cost of the bank to absorb capital, compressed the bank profit space;

Third, for a long time, large state-owned enterprises enjoy low interest rate financing of banks, some state-owned enterprises have become banks, transfer to lend, gain spreads. With the increase of the bank's acquisition of capital cost, the arbitrage space of state-owned enterprises will be reduced and the financial resources should be allocated more efficiently.

Therefore, the balance treasure's opposition force mainly from the bank, some state-owned enterprises. The support strength comes from the fund company, the ordinary user. For the fund company, in the past, the bank sales channel exclusive alone, by the bank "choke neck", now through the Internet channels to break the monopoly of the bank channels. For users, through the balance of treasure, so that the return of funds to market.

How much does internet finance affect banks? Yin Fei, founder of Ping An bank and credit net, predicts that within 5 years, about 10 trillion of the residents ' deposits will be transferred to internet finance, accounting for 20% to 30% of their savings deposits.

So, as CCTV commentator Shinwen said, "The rise in bank deposit rates will inevitably trigger a rise in loan interest rates and raise the financing costs of enterprises"? The vast majority of practitioners do not think so.

The balance treasure raises the operating cost of the bank is determined by the market. "The balance treasure brings together small sums of money to form a large certificate of deposit, and the bank to negotiate the proceeds, which is determined by the market, no one forced the bank to have money deposit certificates, and no one forced to break the bank to a high price. In the case of higher cost, it is the ability of banks to improve efficiency and customer satisfaction. If the bank does not do its job well under the market capital cost, it cannot blame the competitor. "Loan help Net CEO Yin Fei said.

"Why do large-business deposits get a better return than the agreed deposit rate, and thousands of of ordinary users can't get a higher return?" The reason for the bank is that the service is expensive and cannot afford high returns to ordinary users. This is understandable, but it cannot be blamed on competitors using the Internet to reduce management costs. This is a normal marketing activity. "Yin Fei said.

In his view, the balance of the big discussion reflects the problem is that the banking industry has been accustomed to regulate interest rates, faced with a more market-oriented environment is somewhat inappropriate, there are some complaints.

"The balance treasure affects the survival of banks, a trend that forces banks to make changes." What banks can do is adapt to competition. As for the distribution of benefits, who is affected, who should be optimized. "Building Block Box CEO Dong Jun said.

The increase in bank operating cost means that the financing cost of enterprises is improved. Most of the cost of enterprise financing is improved in the intermediate link. Enterprises from the banking system loans, at least 15% of the cost of interest rates, private interest rate even reached 30%. On the other hand, although the operation cost of the bank is improved, the financing cost of the enterprise is relatively marketable, and the loan products of the bank are fully competitive.

Interest rate marketization of inverted deposit

The balance treasure gathers the user's small fund, and the bank negotiates the income, the essence is the curve type interest rate marketization.

The bank's deposit rate is now set at a government price, and the bank has the right to float 10% on the base rate. Bank deposit interest rate on the rise, the current deposit rate of less than 0.4%, the fixed deposit rate of about 4%, and the balance treasure more than 6% of the 7th years of income difference is far.

People put money into banks, and banks pay very low interest rates to make huge deposits and loans spreads. The fund brings together small sums of money to form CDs, negotiates profits with banks and gives some of its profits to the people. "This is a more market-oriented model, the market is not determined by the distribution of the interests of a system, but by the rational pricing of the market." "Dong Jun said.

Yin Fei that the marketization of interest rate is the general trend and the process of marketization cannot be stopped. To break the monopoly, we cannot wait for the bank to change voluntarily, but rely on the progress of technology.

After the balance treasure appeared, a number of banks have launched similar products, competing with high income to save. Balance Bao Let deposit interest rate marketization process greatly accelerated.

"China's financial system has a high profit margin, resulting in a higher cost of corporate finance." Through the marketization of interest rates, allowing more people to put money into more efficient places, will be the next few years China's economic restructuring of the battle. "Yi Huan said.

Regulatory layer leaves room for new things to develop

Liu Xiangmin, deputy director of the Law division of the central bank, has said that internet finance is the product of innovation, not only to contain mistakes in new things, but also to guard against risks, it is necessary to regulate the Internet finance properly, and to reserve a certain space for the development of the industry.

It can be seen that the regulatory layer on internet finance is still open, encourage innovation attitude. In fact, the balance treasure, hundred hair and other products on the line, has represented the basic attitude of the regulatory layer.

What is the reason for the regulatory level to be open?

Many people in the Internet industry believe that in the past years, the financial industry to take advantage of monopoly, profits far from industrial. To a certain extent to liberalize the financial sector competition, the release of some silver monopoly. Internet finance accelerated the process.

Eric Consulting Financial analyst Wang Weidong that commercial banks as a financial intermediary efficiency needs to be improved, many funds are not allocated to have a clear financing needs of enterprises. It may be difficult to make a substantial breakthrough if traditional ideas are maintained. Although the policy level calls for banks to provide good financial services for small micro-enterprises, the breakthrough is not obvious. So regulators hope the new system will bring a certain element of innovation.

"In a way, internet finance companies do what many governments want to do," he said. The government supports micro-credit and Pu-hui finance. Internet finance companies complement the services of traditional financial institutions. "said one financial industry person.

Although it encourages new things, it is not a laissez-faire attitude. The regulatory layer leaves Internet finance with a certain space to observe its development. But internet finance has a sword on its head, and if it does badly, there will be a regulatory policy at any time.