What is the impact of interest rate cuts on Peer-to-peer platforms?

The central bank slashed interest rates since yesterday, with deposit and loan rates down 0.25%. This is the second interest rate cut in just 3 months, following a cut in interest rates last November 22. News, a moment between the affected many industries. So what is the impact of interest rate cuts on Peer-to-peer platforms?

1, the net loan industry is expected to reduce the average rate of 0.5%-1%

Many platforms have already made the preparation for interest rate cuts, and professionals expect the average interest rate in the net-loan industry to drop by 0.5%-1%. Lu Jin in the early morning of March 1 issued a notice, "stable surplus-E" series of annual interest rates according to the different period will be cut 0.29% (January period), 0.35% (12 months), 0.35% (12-36 months), adjusted interest rate from the original 6.5%-8.4% down to 6. 21%-8.05%.

2, reduce the net loan industry bad debts

Although the interest rate reduction has affected the investor's income, but has the very positive effect to raise the asset quality and reduces the bad debt rate, namely the central Bank interest rate reduction provides the opportunity for the network loan profession healthy development.

3, some old platform risk exposure

According to the monitoring data of net loan house, the problem and risk gradually spread to some old platforms while the comprehensive yield of the industry declined. February A total of 58 problems platform, the average operating time of 11.32 months, operating time of more than 1 years have 19, more than 2 years have 5, some of the old platform risk gradually exposed. There are four or five years on the line of the old platform, such as Cheong-net, Sheng and so on are out of the crisis.

4, compared to other financial products, peer-to-peer profitability is highlighted

Some analysts point out that the Peer-to-peer platform loses the high interest advantage which relies on the foundation, will further aggravate the industry competition. However, there is also a different view, that peer-to-peer industry lending rate decline, is conducive to attracting more small micro-enterprises through the net loans to finance. Interest rate cuts do make bank deposits, wealth management products, balance treasure and other yields fall, peer-to-peer yields will also fall, but in comparison with other categories of products, it is more attractive to the peer-to-peer rate of return. In addition, after the financial liquidity demand weakened, investors have more money to spare, and borrowing demand because of the spring Festival is reduced, making the recent net loan a mark difficult to find.

5, channel mode platform to seek quality assets will improve the difficulty

An Internet financial analyst said that the real constraint on the industry is not asset-side, but the borrower, that is, the lack of quality borrowers. The interest rate cut has little impact on the peer-to-peer business of asset-side, and the larger impact will be on the platform of Channel mode (borrowing assets of other financial institutions, such as small lenders and guarantee companies). The difficulty of such platforms in seeking quality assets has increased further, while its service rates have been further reduced, and the narrowing of spreads has led to growing competition in the industry, and the price war may soon be "appearing".

6, property or to become a better quality of collateral

From the supply side, cut interest rates to reduce the real estate developers to bear the interest rate; from the demand side, cut interest rate is conducive to reducing the burden of buying a house, conducive to mobilizing people to buy a house. According to the current economic situation, professionals point out that the central bank's interest rate cut will stimulate the property market, housing will become a peer-to-peer platform for better collateral.