Why is Internet credit so popular? Apply for convenient wind control properly

In the past two years, the hot Internet credit market is not much to say, the ability of the Nuggets, has become the second only game of the sweet cakes. All kinds of attempts, various types of audience control has not been spared, from the enterprise, shop and so do business expansion and maintenance of the use of public consumption and other needs ... More representative such as Peer-to-peer Pat Credit, everyone loans, a favorable net, for the electronic commerce of Ali small loans, Kimbobe, as well as recently in the Beijing white-striped, there are beginning to do at the beginning, currently only focus on mobile internet Wecash flash silver and so on.

In this process, to the Internet to sing a lot of financial, or sing the decline, there is no denying that the Internet is the product of the impact of the industry. In the internet age, any industry will be late or early by the impact of the Internet, resulting in marketing, processes, experience, and even technology, platform and other deep changes. The Internet credit model has also greatly changed the traditional credit flow and experience, the following from the market gap and risk control two angles to explain this change:

The market gap of Internet credit

First of all, a brief summary of the existing problems of the traditional credit model, the author thinks that the main aspects are: one is to handle the slow, the second is the complexity of the process, the third is more data requirements, four is high threshold. (Traditional flow chart below)

This process for the applicant experience, it can be said to be tedious, long, tired of rushing ... Because all this needs to go to the bank to operate, generally, if the borrower is applying for a mortgage, it needs to go to the bank at least 3 times, the average 4 weeks to achieve the loan, if the borrower is applying for unsecured loans is relatively fast, generally only to the bank outlets once, the fastest 3 days of lending. And after the tedious process, can not lend down is not to say, because this process needs to provide a lot of qualifications, such as identification, solvency proof, intention to prove ... If the enterprise loan is more complex, business license, annual inspection certificate, Inventory certificate, corporate identity certificate, company earnings, corporate sales agreement and so on, so traditional credit although the risk control of the bank is relatively controllable, but this process is definitely a big torment for the applicant. Even now increasingly popular, and has gradually "net" credit cards, the specific handling up, often take a small one months of time, and the amount is relatively low.

However, the Internet credit market has enough room for development. Because Internet credit is more satisfying than traditional credit is long tail demand, or non-traditional credit receivers of the long tail of the people, such as the traditional mode of loan acquisition capacity of relatively weak small and medium-sized enterprises, with impulsive slightly partial luxuries of the mass consumption, special groups such as students, such as entrepreneurship, tuition fees, and even marriage proposal ... This part of the market potential of the population can not be underestimated, even in the financial market has been so developed in the United States, facing the strong structure of financial institutions such as banks, personalized loan services have made considerable development space.

A few foreign financing billion-dollar level of enterprises, do most of the loan services, such as the Lengding Club and ZestFinance, the domestic loan also received more than 100 million U.S. dollars investment. It is worth mentioning that the domestic loan business to invest in the project accounted for all the investment projects more than 1/3. In addition, at the end of last year, a new mobile internet based credit products--wecash Flash silver, the current look also has a fairly good market performance. (It will be specifically said later)

Risk control of Internet credit

One of the decisive factors affecting the development of credit enterprises is risk control, and how to reduce the rate of bad debts while guaranteeing the gold absorption is a difficult problem for all credit companies. In fact, compared with the traditional and Internet model, we can know the Internet credit model in the risk control of some effective ways.

To be fair, the traditional bank credit model has certain advantage on the loan interest rate, this is a big bright spot that the bank attracts the user, but this also decided, the bank and so on traditional financial institutions need more quantity to guarantee the income, simultaneously also needs the strict examination pass, in order to reduce the bad credit the occurrence Such contradictory two sides make it difficult for banks to find a balance, sometimes too tight, resulting in a lot of time will be real demand and repayment ability of the people shut out; sometimes too loose, because whether to lend, the bank's client managers have a lot of say, in order to meet the test indicators may lead to a sharp increase in bank bad debt rate.

and internet credit practices are different, in the Internet credit model, the Peer-to-peer Web site is not responsible for debt collection, the platform is only responsible for providing credit ratings and transactions, such as new registered users can only get 3000 of the starting credit limit, so that the platform can effectively evade a part of the risk. and Ali small loan and Beijing Tokyo Baube is according to the shop water decision, on the one hand is the platform to ensure the authenticity of information, on the other hand, because these two platform loans are generally not very high, in order to this money by Ali and Jingdong "close" the risk of the business is not worth it, and therefore, Ali small loan has been able to maintain the 1% below the bad debt rate.

And the latest mobile internet credit products Wecash Flash silver, in its risk control means is actually quite worth mentioning. Because one is its own lender of funds, risk to bear their own, can not be like a peer-to-peer model to avoid risk, the second is that it does not have Ali, jingdong such platforms to the influence of the business advantage, can not find their own proof and a single assessment of an index (similar to shop water). So from the perspective of risk control, Wecash Flash Silver (hereinafter referred to as Wecash) the difficulty of doing internet credit is more in peer-to-peer and electricity business credit, the risk of bad debts is a fight with the bank, but in the speed of credit, its official statement is 15 minutes of rapid credit, the experience of the result is indeed similar, So how do they operate?

In the qualification audit, Wecash is not the traditional and most of the internet credit used in the manual approval method, the current use of artificial intelligence, the future will be all intelligent approval to replace, the traditional way of approval requires a very high staffing, and the need to spend a high cost of time, efficiency is relatively low, Each person each day more likely also to examine dozens of credit request, but the intellectualized approval can save a lot of time. In the application of the information required for the letter and other qualification requirements, unlike other platforms, there is no need for such cumbersome materials as business licenses, annual inspection certificates, financial statements, and so on, and it only needs to provide some simple information, such as companies, jobs, trading flow, and so on, instead of focusing on another link, That is the user in Sina Weibo, Tencent Weibo, Renren's licensing interface, this part of a button can only be authorized, user operation is very simple. Wecash Data auditor will be targeted on the user microblogging and other social networking site data analysis, for keywords, tags, etc. to get their industry, occupation, to see if it is filled with information matching, and can simply judge the quality of their daily contacts, so as to obtain their identity "impression points." In addition, according to the collection of industry, occupation, business data, to understand the person's daily wage income and other benefits, to understand the user's ability to repay. These data will be mutually corroborated by the user's trading flow, credit card bills, and, according to tradition, a data based judgment that determines whether the user is trustworthy, such as how much credibility can be granted.

In addition, the Internet credit is also worth mentioning in the risk control, it is relative to the traditional bank credit, the interest rate is relatively higher, thus high profits cover high risk. For example, Peer-to-peer industry, the lowest annual interest rate in could (Wecash Flash silver also in this range, Ali small loan minimum of 18%), high even can reach more than 30%, and peer-to-peer personal credit loan of bad debts control in heading (Internet credit is relatively medium, generally not less than 2%), Two figures in relative terms, still have a good wind control ratio. It is said that the income of all loans is more than 10 times times the total bad debts, unless there is a large-scale market risk, otherwise the risk is controllable. This cannot be done, of course, but the interest rate on Internet credit is a big guarantee for its own risk control.

In summary, the Internet credit from the service, process, so that customers experience the perfect Internet-style, to the user with convenient operation experience, thus gradually cultivate user habits, so that the user to the previous very few loans, into the possibility of small shopping will want to use the alternative "net loan", regardless of the application threshold or the use of the threshold is a lot lower, So the frequency of use will naturally increase. At the same time, Internet credit avoids the risk from the platform, the data and so on, reduces the bad debt rate, promotes own profit space, by the profit cover risk, thus realizes the Internet credit in the current market outstanding performance. In short, the past 2013 years of the Internet financial performance is very wonderful, just arrived in 2014, internet finance has a lot of good market movements, then will be what kind of scene? It's really looking forward to!