The traditional credit mode of peer-to-peer financial reform

In recent years, the Internet is deeply changed to affect all walks of life, especially the closer the information technology, the less efficient industry changes more thoroughly. Finance is the lifeblood of the economy, its operational efficiency directly affects the optimal allocation of the entire social resources, and the financial industry is facing unprecedented technological changes, the major changes in business model, especially a personal to individual micro-credit transactions (referred to as Peer-to-peer Finance) the power of using the Internet is rapidly sweeping China.

The traditional credit mode of peer-to-peer financial reform

Peer-to-peer concept originated from the Internet technology domain Peer-to-peer download, that is, personal point-to-point download, through the past to the central server as the center of the resource download mode to significantly enhance the Internet resources download efficiency, so Peer-to-peer technology has swept the world.

The business model of Peer-to-peer finance originated in Bangladesh's Grameen Bank, founded by the Bangladeshi economist Yunus, which pioneered and developed a "microfinance" service dedicated to entrepreneurs who are poor and unable to access traditional bank loans. It is because Yunus has made an extraordinary contribution to the poor, especially women, through the creation of Grameen Bank, which has won the 2006 Nobel Peace Prize.

As most developing countries are constrained by the level of economic development, their financial system is immature, and good social Credit system has not been fully established, which leads to inefficient operation of financial institutions such as banks, poor social capital flow, and the difficulty of obtaining loans from banks by small and medium-sized enterprises and individuals with much needed funds. As a result, individual micro-credit transactions in the developing countries can develop rapidly, this kind of private lending mode which is active in the traditional banking financial institutions, once plugged into the wings of the Internet, it has a great impact on the traditional financial model with higher operating efficiency.

When Peer-to-peer finance meets the Chinese market with up to trillions residents ' savings deposits, its development is called Dry wood, which has grown from zero to thousands in all forms of peer-to-peer financial Internet platform in just two or three years. Although China's Peer-to-peer finance is only about the size of hundreds of billions of dollars, there is still a long way to move away from the residents ' savings deposit, but as a relatively high efficiency investment and financing model, it has gradually become a new personal financing channel, especially in the current slump in real estate investment and the depressed stock market, For a huge amount of private funds to provide an export. On the other hand, in the current flood of currency liquidity, the central bank to implement "active stock, control incremental" sound monetary policy in the context of a large number of small and medium-sized enterprises in order to obtain loans from banks and other financial institutions more difficult, and the threshold of lower, more flexible operation of private microfinance can become a lifeline

Peer-to-peer financial risk is difficult to control

Although Peer-to-peer finance now seems to have a more efficient advantage than traditional banks, its future development prospects are well worth looking forward to. But Peer-to-peer finance is essentially a financial business, only with the help of Internet technology to make it more efficient and wider impact, so the nature of Peer-to-peer Finance determines the capital security is to consider the development level of the first factor, and the wind control capacity and capital strength has become a peer-to-peer financial platform competition core.

Peer-to-peer finance based on Internet because investors and borrowers do not through face-to-face transactions, but through the Internet platform to achieve the borrower's personal information and credit relationship audit to carry out business, which led to investors often face the credit risk of malicious borrowers fraud. Even more outrageous is that some of the Peer-to-peer financial site platform through the fictitious borrower information and project fraud from individual investors wantonly circle of money, on the surface is booming peer-to-peer lending business, in essence, the platform through the establishment of a pool of funds illegal fund-raising.

Because Peer-to-peer finance currently lacks a clear industry regulation policy, many speculators are engaged in financial fraud and illegal fund-raising activities in the guise of financial trade, so that Peer-to-peer financial industry gradually evolved into a high-risk entrepreneurial field, from the recent year has emerged from the Peer-to-peer network platform to run events can be confirmed side. In addition, the slump in real estate and traditional manufacturing has led many small and medium-sized enterprises in the physical economy to run the risk of operating difficulties and even bankruptcy, so that many of the Peer-to-peer financial platform for SME lending face the risk of a sharp rise in bad debts.

The current thousands of Peer-to-peer network financial platform, in addition to a small number of companies with a certain traditional financial background related to the implementation of financial institutions, most of the use of the establishment of risk reserves and asset security to protect the interests of investors, and the general financial strength of the weak Peer-to-peer network financial platform, A sharp rise in bad debts, or a single big bad debt, would exceed the ability to pay for the risk reserves, which could destabilize the platform and even bring about extinction. As a result, the first half of this year, the Peer-to-peer financial sector has been the amount of billions of large items of bad debts, so that peer-to-peer large credit has become the hardest hit.

Because of the chaos of the Peer-to-peer financial industry, all kinds of bad debt risk and the platform to run the trend of more and more, so management is stepping up the industry monitoring and research, more stringent and targeted industry regulatory policies will be expedited, such as increasing the threshold of registered capital and licensing operation, In order to prevent the peer-to-peer financial industry of irregular operation brought about systemic financial risks.

Peer-to-peer Finance faces Big shuffle

In spite of the current risk of domestic peer-to-peer financial industry, the bubble is more and more serious, but does not hinder the financial institutions of the state-owned background to participate in competition, after all, from the trend of peer-to-peer finance is a very vitality and growth of the space of financial innovation business. Data show that this year, more and more traditional financial institutions in the form of investment or direct platform to participate in the Peer-to-peer financial business, the industry ushered in the international heavyweight players will likely rewrite the industry competition pattern.

A common phenomenon in the Internet field is that if the industry platform does not have too strong user stickiness and data barriers, and operating costs are high, then often produce monopoly, network buy and network video is a typical case. Peer-to-peer financial platform for the main docking of investors and borrowers, providing mainly information services, investors like bank deposits where the interest rate to go, the platform is difficult to tie investors. And borrowers are often low frequency short-term borrowing behavior, platform accumulated loan record information and borrower resources short-term value is limited, that is, the data barrier is not high. This creates the wind control ability stronger, the capital strength is stronger, more has the capital to advertise pulls the user's Peer-to-peer financial platform to form the industry giant, thus crowding out the small and medium Peer-to-peer financial platform's living space, therefore the peer-to-peer finance will inevitably face "buys the type" the big shuffle.

With the traditional financial institutions to enter the competition, with better reputation, stronger financial strength and more professional wind control capabilities, peer-to-peer financial sector of the annual interest rate will gradually fall to a reasonable level, now generally higher than the bank interest rate of several times the return will be gone forever, The decline of the overall loan interest rate of the industry will also seriously test the profit space of the small and medium Peer-to-peer financial platform. In addition, Peer-to-peer Finance has also awakened traditional banking institutions, especially the decline of real estate credit, banks need to expand new business channels in the environment, banking institutions into micro-credit business has become the industry trend, in squeezing the private peer-to-peer financial business development space at the same time, But for small businesses that have been overlooked by banks but desperately in need of capital transfusions.