Valuation 1 billion of 91 finance: How to stay ahead of bat and traditional financial giants

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Internet Financial Services Platform 91 Financial July 1 announced the completion of the B round of financing, the amount of about 200 million yuan, the value of about 1 billion yuan. 2013 is the year of Internet finance. This year, Alibaba launched the "Balance treasure" in the financial field set off a wave of waves, then, Baidu followed the "Baidu Hundred" wealth management products also caused a sensation. The move of the IT giant confirms the huge space of internet finance. The first 91 finance has been in this field silently rooted three years. At present, 91 financial services more than 2 million users, trading volume of nearly 100 billion yuan. So what's so special about this internet financial company? Recently, we interviewed CEO Mr. Xuzey, fully understand the 91 financial founder of the Xuzey is how stuffy ran in front?

The following are Xuzey dictation:

Our three historical stages

The second half of last year, internet finance in the balance treasure led by the rapid outbreak. From entrepreneurship to the current 3 years, 91 of the financial sector has been the breakdown of several times "renamed"-initially we were called the financial electricity business, then called the financial big data, now we are called the Internet financial portal. In fact, we do one thing, is to serve the Chinese consumers, so that they safe and convenient, professional access to loans.

The entire 91 of finance has been in place since 2011, with a total of two years, nearly three years of history, in the entire Internet financial enterprises in the early, but in the financial sector is a relatively new company.

In the past, we have three historical stages, the first phase of the equivalent of financial information services, the provision of consumers to financial institutions, the financial institutions equivalent to the Internet to help them sell products, equivalent to an Internet information platform, equivalent to intermediary services. As we've been doing this for a long time, we've got a better grasp of the information, so we're up to the second business, which is the equivalent of trading services. Because we do not just provide information, we also help users to complete the transaction, is equivalent to help financial institutions to complete the transaction, to achieve directional, customized products, of course, all of these through the Internet, which is the service of financial transactions, such business we do tens of billions of dollars. In the third phase, it is the service of financial products, which means we have our own financial products. Of course we have to join the financial institutions to do this product, such as our value-added treasure, such as our wealth, is our joint innovative financial institutions to do the product. Third business I estimate to be conservative, do 1 billion, and be optimistic about 3 billion. In these three business, the first one we gain is very few, the second business income is thousand, the third business income is a few percent, because you to the product's intervention layer is different. But the reason we can do this comes from our understanding of financial data, which is equivalent to a lot of data as analysis, matching, rating, and then pushing products.

Hope to be safe on the Internet

In the long run, we want to be safe on the Internet, because we are doing 1 million to 10 million of the financial services people. Ordinary people, the consumer crowd is very large, but that does not need the Internet to provide financial services to him. We don't do the smaller people, we do 1 million to 10 million of the size of the asset group, who is this group of people? It's the people who have a house in China's one or two-line city. This is not the same as private banking, where private banks usually serve people who are entitled to more than 1 million dollars in disposable property, equivalent to a large amount of money they can invest in.

The group we serve is his total assets with so much money, for example, he has a house in Beijing, or he has more than 1 million to finance. What we do is this kind of individual and such volume of SME. This group and the Peace Service crowd is the same, safe insurance, including Ping An bank and ping an securities, services are the group of people. This group is a group of people we think he should have enjoyed financial services and in fact did not enjoy financial services, but this group has to queue up at the bank because you can't get into the private bank and line up at the regular bank, so we're going to serve this part through the Internet.

We are better than peace. Ping An is a full license, this is its advantage, but it is only the lack of peace products, they can only work with a ping an bank.

Our 91 finance can work with many banks, after all, third party companies. We do the equivalent of real estate financing, for financial institutions is the process of asset securitization, our people's biggest asset is the house, we put your house with more efficient financial means to circulate it, your asset securitization, into money, you want to loan can be mortgaged, If you have money to finance you can buy our various financial products.

We want to be the first company to solve financial problems through the Internet, especially in the field of real estate. Internet finance every family actually do not exactly the same, to the Internet financial enterprises, we are very respectable, but some do is credit loans, we do are secured.

91 Financial choices serve traditional financial institutions

I have experience in financial institutions, as well as experience in internet companies, and I think the reason for doing 91 finance is also determined by these two experiences.

I myself, for family reasons, my grandpa, Mom and dad all work in the bank so my bank experience a little more, but my personal business time is mostly in the Internet company, once in Sohu internship, work in Sina, so that I can gather to these two resources or genes to do 91 finance this matter.

So many Internet financial enterprises, many of the use of challenge banks, subversion of the bank's ideas, such as 91 finance or the choice of service banks, to serve the financial institutions of thought. This is because of my financial accumulation of the role played. Say risk pricing itself, it will not because of the internet there is no risk, this will not change. But the internet does introduce some new models and standards, the Internet can speed up the flow of risk pricing, such as the person's risk factor you accept that I do not recognize, traditional areas may be difficult to find the next recognized it, and on the internet can be easily found. is to accelerate the efficiency of the allocation of assets, but it can not change the risk itself, nor change the investor's demand for the return of funds itself, this is not change, the Internet will accelerate the efficiency of the allocation of funds, so do 91 finance this is a combination of the experience of the Internet and financial field experience.

Across the corporate team, we have an internet company background, more people in financial backgrounds, and half of management from financial institutions, not internet companies. In terms of age, our financial institutions are responsible for the age of the whenever, are more mature, and are rich in financial institutions experience, so for me is the two cultures blend together.

We embrace Financial regulation

Our company has direct channels of communication with all regulators, and is willing to participate in the investigation of regulatory bodies, and we would like to provide our report to him even if they do not study it. Everything we do is carried out in accordance with existing rules, such as we have never tried to break or break through, and now we are actively striving for more legal licences, for example, we now have financial information services, asset management licences, and are now trying to win more licences.

It is worth mentioning that our large number of potentially risky businesses, all of which are in cooperation with traditional financial institutions, are not for us to complete, some of us may be the front desk, so it really involves the part of the transaction or all the banks or financial companies. From these four aspects to ensure that our business is compliance, according to policy, I think all internet financial enterprises, you do not evade supervision, must strive to embrace regulation, this is our attitude.

Cooperation is better than competition, it is a big idea

The financial market is very big, of course we will have competition, but we have to do a good job in this market, it is not yet a life-and-death situation. Although there is a certain degree of competition, but cooperation than competition for everyone is obviously more favorable situation, on the other hand, there will always be someone in the market, people with resources, or want to imitate people enter the market, it is very normal, including the traditional financial giants also do internet finance, I think the whole market is still the first stage of the big market, so we still work better than competition, this is the idea. Any competitor can only say to do their own faster, more subversive, in order to be in the position, we now belong to the forefront of the status, we can only continue to maintain faster.

But the finance has a characteristic, must consider the risk, the running fast is not necessarily the best, therefore must establish in the strict risk control. For example, our business, all the loans, we have mortgages, we believe that there is a mortgage than credit loans better, of course not to say credit loan is not good, because each company's style is not the same, there is more reasonable mortgage, even our risk control standards than the banks are strict. So we are not only in product innovation and the logic of the Internet to want to go the fastest, and we in the financial risk this piece to do very rational, very stable. Finance is a long line of industry, unlike the Internet, although we used to say that the industry is showing many times a year of growth, but I think from a financial perspective or prudent.

Why don't we have dollar funds?

The dollar fund once gave me one times the price, the temptation is very big, but we can only abandon it

In terms of investment, we started with the angel investment of the Jingwei venture, and then the Jingwei VC a round B was cast, a round of the time is the broadband capital, Jingwei with the vote, now is B round, the cast side for the Sea Pass Securities direct Investment company, and then the Jingwei with the vote, broadband also followed, so we see that our successive investors have been with the vote, This also shows the recognition of the capital to us, the recognition of the team, the 91 finance thing.

Investment talks have been tough because there are a lot of options. Like we turned down all the dollar funds, although the dollar is more flexible, gives a higher valuation and can be listed on Nasdaq in the future, or the U.S. listing is not as stringent as it is domestically, we have abandoned all US dollar investments because we believe that 91 of the financial business is serving the Chinese mainland, The United States without China's internet finance is so hot, because the U.S. traditional financial services are good, on the other hand, I hope that the future listing, my users and investors are consistent, is a group.

Of course not to shut out all the dollar funds, we still want to know these people, because there can be some resources for cooperation, but my choice is always RMB fund. Our capital route is to take the route of a shares, this is also our own judgment, it is a very difficult choice to make this choice today, because the dollar fund once gave us a price, the temptation is great, but we can only give up it, this decision is not easy to make.

In terms of capital selection, we tend to choose investors with strategic resources. We may sacrifice stubbornness for resources in our choices, but we think it's worth it. Of course, this experience is limited to us, others have the idea of others. We now also fully enjoy the resources to bring us dividends, such as some things now some teams are not qualified to do, you have done illegal, we can do, these are because you have the resources behind the line.

I black Horse Reviews:

At the moment, Xuzey, who completes the B-round financing, wants to build a "cat" or "Wal-Mart" in the financial sector, showcasing products from financial institutions and privately-developed corporate balances on the web shelves, which means 91 of finance is taking risks from the financial front to finance. It can be said that 91 finance each round of business model upgrades, are accompanied by a VC and fallback, as the industry often said, the Internet financial Entrepreneurship is a marching marathon, the wind bets, it is still difficult to say who can "left the king."

I Dark Horse Reporter: Week pool

Finishing: Wen Yuni