To the hot internet finance poured cold water

Balance Treasure of the online, so that the concept of Internet finance instant hot up. and the major fund companies settled Taobao, once again highlight the unlimited charm of internet finance. For a time, all the media in the Internet for the financial praise, said the Internet is the traditional financial industry life, and media said the Internet let traditional financial glow another spring. Behind all the rhetoric, there is no mention of the risks of internet finance and the many challenges it faces.

In view of this, I want to give the hot internet finance poured cold water, I hope that the entire industry and the media can calm down, rational view of the development of Internet finance, rather than blindly advocating.

Neglected risks

Balance treasure on line, the media focus has been gathered in the high yield advantage above, ignoring the balance of the treasure itself some of the risks. The glitz fades, the balance treasure high returns the halo behind, is some unexpected risk. In particular, risk is a benefit risk that both the fund company and the user are concerned about.

I believe many people remember that the balance treasure on the line when the annual rate of return is 6-7%, has now fallen to about 4%. As of July 25, the balance Treasure of 7th annual return rate of 4.411%. Compared with the money fund that the bank sells, the advantage of the balance treasure is already in the profit.

It is not difficult to see that the balance of the so-called high return is only a maximum value, the actual income is still to be affected by changes in the market environment. For the user, the balance treasure unpredictable rate of return has become a potential risk. Balance treasure on the user when the purchase did not give the corresponding risk hint, from the operating point of view is also a business risk.

In addition to the lack of risk to suggest this business risk, at any time can be redeemed to the fund is also a risk. If there is a large amount of money redemption, it is bound to the fund company capital flow formation pressure. For the fund companies ready to come into Taobao, in addition to the same risk of the balance treasure, but also face the risk of return.

Reports from the media said that the fund companies in Taobao open shop to sell funds, in terms of daily average, whether it is a stock fund, a bond fund, a monetary Fund, or other types of funds, the funds sold under 100 million will be charged a 200,000 yuan service charge to the fund company and 1-3 billion for a service charge of 500,000 yuan. Service fees are charged once a year, the greater the amount of funds sold, the higher the charges.

In this respect, one of the fund's E-commerce Department of the media said: "Because the fund's own management fee is low, coupled with system development maintenance fees, advertising marketing and human resources costs, in Taobao selling funds may not outweigh the gains, may also lose money."

Compared with the risk of the user's fixed income, the Internet financial form of the Fund, the fund company's operating risk is greater. In addition, many fund companies in order to strengthen the advantages of Internet finance, the introduction of funds at any time to redeem features such as services, so that the fund companies face greater risk. These risks are ignored by the media and users.

Challenges facing the cross-border

At present, the main manifestations of internet finance are financial products network sales, network insurance sales, and micro-credit network. From some Internet financial products, almost traditional fund companies and insurance companies, Cross-border to the Internet platform to do sales, this is invisible to face many challenges.

Fund companies and insurance companies in the traditional market has a wealth of experience in the internet-based platform of sales model experience is lacking. Taobao platform for the sale of financial products to the fund company, Taobao organized a 8-day E-commerce training, as well as a 4-day internet marketing training.

Due to the expansion of product sales to the Internet Platform, fund companies and insurance companies to develop the corresponding system, and Taobao, such as the Internet platform to complete docking to meet the needs of users to purchase financial products online. One thing to note is that the challenge for fund companies and insurers is not system development and docking, but marketing based on the Internet platform.

Financial management products to the network sales, the essence of the fund companies in Taobao open shop to sell funds. Plainly, the fund company in Taobao, is to play a role as a seller. Like Taobao millions of sellers, fund companies in Taobao need to win customers, need to engage in marketing, need to decorate the store. From traditional marketing to internet-based marketing, such a large span is undoubtedly a huge challenge. Because of this, only Taobao for the settled fund companies to provide a series of training practices.

For fund companies in the internet marketing on the short board, "Customers who buy funds online may be more willing to buy fixed income products such as money funds, which have less management fees and if we first set up on Taobao," said a fund insider in an interview with the Securities times. Sure to invest a lot of money in advertising marketing, we all want to hit, compared to input and output, may be in addition to earn some so-called fame, the end is a loss to make a yell. "Between the words, reflects the fund company in the marketing disadvantage."

In addition, the security and practicality of Internet platforms is a challenge to Cross-border fund companies and insurers. How to improve the existing sales system, strengthen security, improve a variety of functions, also testing the Internet financial services providers.

Indeed, the excellent marketing capabilities of the Internet platform has been obvious to all, this is the fund companies and insurance companies and other traditional financial institutions have been involved in the Internet, the biggest power, but also the cause of the internet financial boom. It has to be admitted that Internet financial products such as balance Bao have advantages that traditional financial products do not have, but these advantages make Internet financial institutions face many risks and challenges. To this end, I sincerely remind the media and the industry, do not unduly fry the advantages of the Internet financial products, ignoring the Internet financial products face the risks and challenges.