There are many variables in the future of Peer-to-peer network loan platform

Absrtact: Platform risk control and regulatory gaps, so that Peer-to-peer network loan platform in the future there are a lot of variables recently Sequoia Capital invested 25 million of dollars in the racket, indicating that the personal net loan market is rapidly becoming another catalytic target of venture capital. As early as last year, Kay Peng

Platform risk control and regulatory gaps, so that Peer-to-peer network loan platform in the future there are many variables

Recently, Sequoia Capital invested 25 million of dollars in the racket, indicating that the personal net loan market is rapidly becoming another catalytic target of venture capital. As early as last year, the company also joined IDG and Morgan Stanley to invest $ tens of millions of in another firm.

Personal network loans also known as Peer-to-peer (Peer to Peer) network lending, is the use of network platform, the need to fund people in the platform to release information on the loan, loan people use the network platform, their own funds to lend money to those who need money, both sides benefit. Peer-to-peer network lending transactions, are "personal" and "personal" transactions between the site or platform to provide only a two-party trading platform, itself does not participate in lending.

The abundant private capital and the low return of the banking system have fostered the prosperity of the private loan industry, and the personal net loan as a new thing is not well known at present, the risk control of the platform and the blank of supervision, let the Peer-to-peer network loan platform have many variables in the future.

Is this new financial business model rapidly evolving into a healthy industry or a paradise for speculators to fish in troubled waters?

Why do personal net loan?

Compared with private loans, the advantages of personal network loans are obvious.

1, small and unsecured loans, the cover of the borrower is generally the middle and lower income groups, the existing banking system is not covered. Low threshold, low channel cost everyone credit financial model so that everyone can become the credit of the disseminator and users, credit transactions can be easily carried out, the social idle funds to better configure, the middle and High income group of idle money reasonably led to many good credit and need to help the middle and low income people.

2, network lending with the help of network, social power, emphasize everyone to participate, reduce the cost and risk of censorship, than private lending transparent. The lender and the borrower directly sign the personal loan contract, each other to understand each other's identity information, credit information, the lender in time to learn the borrower's repayment schedule and the improvement of living conditions, the most real and intuitive experience of their own creation for others.

3, the borrower's borrowing rate set itself, personal net loans site set the statutory maximum rate limit to avoid usury.

4, the net loan platform itself does not participate in the loan, the main makes the information matching, the tool support and the service and so on some functions, the borrower is easier to find the capital loan side.

5, the risk of dispersed lenders to the funds dispersed to a number of borrowers, while providing a small amount of loans, the risk of the greatest degree of dispersion.

What are the participants?

In the 2005, the first appearance of personal (Peer-to-peer) network for everyone loan mode service platform Zopa in the UK. February 2006, the United States first Peer-to-peer network lending platform Prosper founded. Foreign more well-known has Grameen Bank, Lending Club and so on. This model has also been copied to China, there is currently a pat credit, the letter, everyone loans.

1, Pat Credit, was founded in August 2007, headquartered in Shanghai, is China's first peer-to-peer credit online lending platform, and peer-to-peer network lending industry The first to get financial Information Service qualification Company.

2. Yi Xin, founded in 2006, headquartered in Beijing. More than 10,000 employees at present, in more than 60 cities nationwide and more than 20 rural areas to establish a national Cooperative service network.

3, Red Ridge Venture, was founded in early 2009, headquartered in Shenzhen, in the network lending platform enterprises only to do a joint-stock reform enterprises.

4, easy loan 365, was established in 2009, headquartered in Nanjing. For the first time, the credit rating system of small and medium-sized Enterprises was introduced into the private credit loan network platform. 365 website does not pay, only serves as intermediary consultation platform.

5, e-speed loans, was founded in September 2010, headquartered in Huizhou, Guangdong. by Huizhou Investment Co., Ltd. established, registered capital of 20 million yuan. As of October 31, 2011, the Web site registered more than 5,000 members, the application of more than 130 million loans, has successfully lent 100 million yuan, investors have benefited as much as 10 million yuan.

6, all loans, was founded in October 2010, headquartered in Beijing.

7, fast loan state, was founded in September 2010, headquartered in Hangzhou. Provide characteristics of "1+3+n" service, customer-centric, for customers with life-long Customer Manager, Credit audit manager, with single manager and more than three financial institutions at the same time for customers to provide free loan advice, loan processing, loan transactions, "One-stop service".

8, you and I loan, was established in June 2011, headquartered in Shanghai. Committed to lending both sides to provide comprehensive lending brokerage and guarantee services, through the continuous improvement of Internet platform services for investors to protect the security of income.

9, ease loans, from the line to the line of financial services companies. Founded in 2009, June-An letter guarantee company is the operating subject of peace of mind, in the operation of peace of mind before the loan, June-an letter is a small business loan guarantee company, the main management of the background is mainly financial and legal.

According to the Network Loan Home survey questionnaire, the domestic net loan investor group is to whenever, the main investor population, male majority, industry statistics to the Internet, finance and government department personnel majority, the investment amount mainly concentrates in between 10,000 to 500,000, among them 100,000 to 200,000 mostly. NET loan investor is a kind of investor who can bear certain risk, open-minded, investment more radical, have certain economic foundation. According to the data, the most traded provinces in 2011 were Shanghai, Guangdong and Zhejiang. Among them, the racket loan borrower (successfully borrowed) 82% is male, successful loan 73% is 30 years old and below.

Into the 2012, a group of investors to invest in the new platform, including large investors. Such investors or individual investment, or group investment, roaming between the new platform, speculative, fast forward fast.

How to operate?

According to the manager magazine, Peer-to-peer Personal Network loans from the trading model of the main three models:

The first category is the offline trading model, this type of Peer-to-peer Web site provides only the transaction information, the specific transaction procedures, transaction procedures are by Peer-to-peer credit institutions and customers face-to-face to complete. "Yi Xin", the first to be settled in Wenzhou private Lending center, is a typical representative of this model. In addition, as the Giants into the Peer-to-peer domain of the group's "card Big E loan" and China Ping ' an "Lu Jin" is also the model.

The second category is the commitment to protect the principal of the Peer-to-peer website to Shenzhen, "Red Ridge Venture" and Shanghai's Rising Star "you and I loan" as the representative. Once the loan is in default risk, this kind of website undertakes to advance the principal for the sponsor. The current market in this mode of operation of peer-to-peer sites accounted for the vast majority.

The third category is not committed to protect the principal of the Peer-to-peer Web site, to Shanghai's "racket loan" as the only representative. When the loan takes place the risk of default, the racket loan does not advance the principal. The latter two types of peer-to-peer sites are mainly to provide online services, the site as an intermediary platform, borrowers and lenders through its website auction transactions.

In the capital turnover process, generally divided into several steps:

1, borrowing, lending platform to provide a complete set of funds management process, similar to Alipay's way, the user will recharge the money to the loan platform of their own account, and then to their own approved borrowing bids, after the completion of the bid, the loan platform to review the borrower information, through the successful loan, funds from the investor account deduction, Into the borrower's account, the borrower may apply for the present to his bank account.

2, repayment, borrowers recharge to the loan platform, through the system repayment function repayment, the relevant money will reach the investor account.

3, the loan interest, most sites claim the lowest 1% of the borrowing interest, and the actual transaction of the loan interest generally in 10%-20%. Depending on the borrower's creditworthiness, asset status, and repayment record, the investor's willingness to invest will vary, and a high credit user can generally borrow at lower interest rates.

4, the loan period, all the loan platform is the shortest one months, the longest 12 months.

5, the repayment method, there are two kinds, one is monthly repayment, the monthly principal and interest; one is quarterly repayment, interest per month, and quarterly principal.

6, overdue punishment, each website has its own overdue punishment system, every day overdue will have late fees, and some sites will have reminders, in general, the penalty is very high, it is best not overdue. Many people who are overdue or long overdue will enter the blacklist of websites and can no longer borrow from the website.

How much is the yield?

1, peer-to-peer Network loan platform side:

Take racket loan as an example, to borrow and lenders to provide a loan platform, from which to charge fees. According to its provisions, the borrower does not charge the money, for borrowers, the loan period of 6 months (including), the loan after the successful payment of the principal of 2%, the loan period of 6 months, the principal 4% as a handling fee.

2, the funds to lend the party:

According to the Chairman of the letter, Downing said that the loan money of the financial managers of the annual income of about 10%, the borrower's interest and fees based on the different people and personal credit conditions vary, the interest rate of loans in 10%-20%.

Public data show that in 2012, Internet lending rates were polarized, some Web sites fell below 15%, while others received as much as 30%, or more than 40%.

It is noteworthy that the current network loan platform for most of the loans are under 6 months of short-term borrowing. The central bank's 6-month (including 6-month) lending benchmark rate is 5.6%, and its 4 times-fold lending rate is 22.4%. The highest level of income is a number of new platforms, the actual rate of return of these platforms will exceed the statutory lending benchmark rate of 4 times times, but interest rates are within 4 times times the legal benchmark interest rate, other benefits are mainly through direct tender reward form.

What are the risks?

1. Market credit risk. July 21, 2011, the accumulation of 100,000 registered users, claiming to be "China's most rigorous network lending platform," haha loan issued a closure notice. According to the circular, based on the current Chinese market credit problems and haha loan currently encountered operating capital shortage, September 2, 2011 onwards, will all stop haha loan service This is the first to have a certain scale network peer-to-peer lending platform announced close.

2, the network loan platform itself operating poorly. Most of the network loan platform undertakes to advance the responsibility (most platform promise, once the loan produces the overdue risk, will advance the principal or the principal interest by the platform), therefore, the single object's risk will evolve into the platform's operating risk.

3. There is a legal gap in supervision. "Jiangnan angry Youth" said that both at home and abroad in the supervision of the same, all the legal blank, the United States, the originator of Peer-to-peer mode, Prosper was also recognized by the regulatory authorities illegal, but later was allowed to reopen, but also shows the industry in the end, are watching.

4, Peer-to-peer fraud funds. Domestic Peer-to-peer since the beginning of 06, 07 years, there have been a lot of peer-to-peer fraud cases, in September 2011, Bell Ventures, the amount of money involved in 3 million, June 2012 Gold Rush, the amount of money involved 1 million.

Policy trend

According to the "entrepreneur" report, in August this year, CIC Vice President Xie completed a report on China Financial 40-person forum, analyzed the Peer-to-peer Internet financial model such as Yi Shun, and considered that Peer-to-peer financing model is a useful supplement to the existing banking system, which may become the major financial model in the future. This financial innovation cannot be nipped in swaddling clothes because of some problems in the early stages of development. One months later, the Tianjin Davos Forum, China Merchants Bank President Ma also affirmed peer-to-peer Internet lending mode.

The CBRC has not issued a specific policy, in August 2011, the CBRC issued the "Everyone Credit related risk notice", said, because the industry threshold low, and no strong external supervision, Peer-to-peer platform loan companies in China is still in a regulatory vacuum, due to the relevant laws are incomplete, Neither the central bank nor the CBRC has any statutory responsibility for its regulation, and the CBRC's notice focuses on warning banks to pay attention to cross-border contagion of risk.

The CBRC believes that the Peer-to-peer loan platform has seven major risks and hidden dangers: affect the effect of macro-control, easy to evolve into illegal financial institutions, business risk is difficult to control, false publicity affects the overall reputation of the banking system, the supervision is unclear, the quality of loans is lower than that of ordinary banking institutions, the real estate two mortgage business deposit risk.

Xiaoling, deputy chairman of the National People's Congress, said in a public situation that the current popular network "Everyone loan" mode, should be carefully explored, beware of becoming illegal fund-raising harm society.

Xiaoling said microfinance, as the main area of micro-finance, should be encouraged through the decentralization of independent write-off of bad debts and the institutionalization of temporary preferential policies.

Downing believes banks are being asked to provide some financial services to small businesses and low-income groups in financial markets in developed countries. Because of the need for different credit technologies for small micro enterprises and low-income groups, in foreign countries, banks will choose to have a service with small micro-enterprises and low-income groups with the ability to work together to complete the financial services process, which has been proved to be the best cost, and play their comparative advantage.